Can A Lawyer Stop A Foreclosure
Dealing with an imminent foreclosure can be a challenging and stressful situation. Thus, it is a good idea to hire the services of foreclosure attorneys. Apart from lending a helping hand, they can also offer you valuable information abouthow can a lawyer stop a foreclosure.
Although coming up with the attorney’s fees when you are struggling to keep your house may be difficult, it is worth the investment. If foreclosure is unavoidable, the attorney will at least be able to buy you some extra time to sell your home at a reasonable price.
Here are some of the advantages of engaging with a lawyer of a reputed law firm when you are facing foreclosure:
Expert review of your loan-related documents
The foreclosure process is very technical and complicated for a layman. It is thus in your best interest to ask for the advice of an experienced lawyer. They will carefully review your loan documents and strongly defend your case if they find any predatory or unfair lending practices. Even a small mistake in calculating the annual percentage rate on the part of the lender is a violation. Thus, if your lawyer finds such discrepancies in your loan documents, you stand the chance of rescinding the loan and stop the foreclosure.
Filing a legal response
If you live in a state that mandates judicial foreclosures, then the lender is legally required to file a lawsuit against you to start the foreclosure. After receiving the papers, you have a fixed number of days to respond.
Legal terminologies are often confusing. Many of the times, people who do not opt for a lawyer’s services file an improper legal response. Small errors while filing can wield a deadly blow as it brings you closer to losing your home.
Thus, avoid such a situation by letting an attorney handle the paperwork. Not only will they read the papers diligently but also file an appropriate response to the complaint. The attorney may also counter-sue the lender for violating any law if he/she finds valid legal grounds for doing so.
Advocating on your behalf
A real estate attorney is well versed in state foreclosure laws. So, the lawyer can explain the process and your legal rights more clearly to you. They can also suggest the best course of action depending on the current situation.
Moreover, your attorney can directly negotiate with the concerned bank on your behalf and reach an out of court settlement. Some possible solutions to resolve the problem are a short sale, loan modification, or deed instead of foreclosure.
Having a lawyer representing you ensures effective communication with the lender. So, you can rest assured in the knowledge that your case will be well-heard.
If you have filed for bankruptcy without taking legal advice, it might come as news to you that filing for bankruptcy does not stop the foreclosure or is not the best way to avoid foreclosure. It only puts a temporary stop to it. Hence consult with a bankruptcy attorney before moving ahead with your decision.
There are 2 types of bankruptcy claims- Chapter 7 bankruptcy and Chapter 13 bankruptcy. The former type of bankruptcy claim can wipe the slate clean and stop the foreclosure clock. Although you may not be able to hold onto your house permanently, your liabilities are usually forgiven.
In the case of Chapter 13, bankruptcy claim, your debt is mostly restructured in a way to make your pending payments more affordable. You can reduce your arrears if you can come with the resources to pay the normal mortgage payments. Also, note that you must repay it through a systematic monthly repayment plan.
Fighting foreclosure is an uphill battle. So take the help of foreclosure attorneys to tide over these difficult times. We hope that this article has helped you understand how can a lawyer stop a foreclosure and given you all the information you need to make the right decision.