At The Law Offices of Lee M. Herman, Esquire we have extensive experience in helping people who are facing the threat of home foreclosure. There are many possible solutions to a foreclosure action ranging from finding a reasonable resolution with the mortgage holder that allows you to stay in your home to taking aggressive action in situations where the mortgage holder has acted wrongly or has not followed all the rules required in a foreclosure action. We will take the time to evaluate your specific situation and determine the best course of action for your situation.
Possible solutions to a foreclosure action include the following:
Mortgage Modification: The mortgage holder (most likely your bank) may be willing to renegotiate the terms of your loan contract. You may be able to reduce the monthly payment amount, extend the term of the mortgage, forgive money owed, change the interest rate or reducing the principle amount owed on the loan. Most banks follow an “secret” formula that makes it nearly impossible to know if you are being given a fair chance. Having an experienced attorney on your side will help you achieve a favorable outcome.
Legal Defenses: There are strict guidelines that banks must follow in Foreclosure proceedings. These range from giving proper notices about falling behind on your loan to giving notices about legal filings and hearings. Banks and other financial institutions are also required to show that actually own the Loan and failure to provide this proof takes away a banks right to foreclose on your property.
The federal Truth in Lending Act (TILA) requires banks to follow strict guidelines. If your bank has violated TILA it can be a defense against a foreclosure action.
Lender Fraud: Unfortunately we live in a world full of companies that use fraudulent practices in the money lending business. If this has happened to you your lender may be liable to you for financial damages.
Bankruptcy: Filing a Chapter 7 or Chapter 13 bankruptcy may be your best solution to your mortgage problems and to take steps to get your back to financial stability. To find out more see our Bankruptcy page.
Short Sale: Although not always the ideal solution if you have fallen very far behind on your mortgage payments and if your home has value then this might be your best option. In a Short Sale transaction your home will be sold at a price that is less than what you owe on your mortgage. In return the Bank will accept this price as full payment of your loan. Care must be taken and it is imperative to have an attorney to ensure that the bank cannot go after you in the future.
Deed in Lieu of Foreclosure: This is another transaction to be considered in your are very behind in your mortgage payments and owe a significant amount of money. In this situation the bank will agree to take the Deed to the home instead of foreclosing. You will not be able to stay in the home but we can negotiate for you other things including allowing you to stay for a certain period of time, having the bank pay moving expenses, and having the bank pay you a set sum of money.