Borrowers who have fallen behind on their mortgage payments face the terrifying prospect of foreclosure. However, there are alternatives to this penalty that borrowers can discuss with their lenders. In order to avoid a loss, some lenders may be willing to work with you.
The most common option when facing foreclosure is a mortgage loan modification. This does not reduce the amount of money that you owe on your home. It can reduce your monthly payments by rolling them out over a longer term. This would extend your mortgage, but it may give you more affordable payments. Alternatively, a mortgage modification could lower your interest rate.
You may also work with your lender to get other types of flexibility. They could agree to forbearance where they may not collect your payment for some time, although you would still need to pay in the future. The lender may take less in payment for some time until you can pay in full again. In serious cases of financial distress, you can declare bankruptcy. The Chapter 13 bankruptcy process can give you breathing room while you reduce your debts.
If you still want to keep your home, you will need to work with your bank. If they do not accommodate you, there are some loss mitigation programs through the Federal Housing Administration. If the lender moves to foreclose, they must follow the law to the letter. When lenders violate the law, you can challenge the foreclosure. They do not have an unlimited right to do as they please.
The attorneys at Naples & Spence defend clients who are facing foreclosure and challenge the action when the lender violate the law. Call us today at (904) 744-7429 or contact us online to get immediate legal help.
