Although the foreclosure rate has decreased in the wake of the Great Recession, more than 1.1 million properties were foreclosed on in 2014. For those facing the prospect of losing their homes, the process can be confusing. Because lenders have different standards and practices, there is no way to know for sure how long it will take. Also, the financial institution (usually a bank) that owns your mortgage is under no obligation to help you. As such, it is always a good idea to hire a foreclosure attorney as soon as possible. With that in mind, here are answers to some common questions you may have.
I received a foreclosure notice. That I have to do?
To start the process, mortgage lenders must file a notice of foreclosure with the court. This notice expresses your intent to repossess your property by a certain date, unless you can make up all late payments. Under the laws of most states, you have a firm deadline to admit or deny that you missed payments. But even if you claim that you are delinquent, you can present a defense that the court may consider. If, for example, someone in your family has a life-threatening condition that has forced you to deplete your savings, a judge may take that into account. A foreclosure attorney can not only help you file the necessary paperwork with the court, but can also represent you in all future legal proceedings.
How long does the process take?
Because different states have different laws, there is no way to know for sure. State averages vary widely from six months to three years. That said, hiring an attorney is sure to slow down the process, and that’s not necessarily a bad thing. After all, the longer it lasts, the more time you have to pay what you owe.
How can I pay for legal advice?
It may surprise you to learn that the average foreclosure attorney does not charge that much. Because he or she knows the process inside and out, he or she usually asks for a flat fee of between $1,500 and $4,500. Now, that may seem like a lot when he can’t afford his mortgage, but it’s a proverbial drop in the bucket compared to what he’d spend on moving costs and future laws. Even after your home is moved, your lender has the right to sue you for late payments. A reputable attorney will help you fight these lawsuits. He or she can even arrange principal reductions, allowing you to pay much less over the full amount you owe.
How can I win?
In their rush to repossess a property, a mortgage lender may ignore due process of law. When this happens, a good representative can stop or win a case. If he or she can prove that the lender violated state and/or federal laws, the case may be dismissed. At the very least, she’ll have more time to save her pennies and prepare for a fresh start.
If you’ve received a notice from your mortgage lender, don’t delay. Contact an experienced attorney immediately.