If you are facing foreclosure, there are several steps to take immediately to help your situation. Foreclosure can turn your world upside down, but you can take action to take control of the situation and make sure that your interests are represented in the process. Here are the immediate actions for foreclosure that can help you secure a better outcome.
Contact a Foreclosure Attorney
The most immediate action for foreclosure proceedings is to contact a foreclosure attorney. The laws around foreclosures are difficult to deal with, especially without the right training and experience. You need to have someone on your side that knows what they are doing and can take action on your behalf. Talk to a foreclosure attorney right away to make sure that you are fairly represented.
Collect all Communication From Your Lender
Your lender will likely contact you through the mail. Collect any documentation and deliver it to your lawyer as soon as possible. That way, they can stay on top of your case. Also, refer all communications to your lawyer unless you need to be directly involved. This limits the lender’s ability to take actions without going through your lawyer to do so.
Open Negotiations With Your Lender
With the help of your lawyer, open negotiations with your lender to reinstate your mortgage. Lenders don’t want to file foreclosure proceedings because they are very expensive and time-consuming. They have a lot of incentive to negotiate to reinstate your mortgage.
A mortgage reinstatement is a process where you pay a portion of what is owed, and the lender resets your mortgage, ending the foreclosure process. How much you have to pay to be reinstated depends on your negotiations. You may need to pay all of what you owe to catch up with the mortgage, or your lawyer may be able to negotiate a lower amount. Either way, this could be an effective way to get out of foreclosure.
File for Bankruptcy
Another option is to file for bankruptcy. This won’t end the foreclosure process, but it will pause it until the bankruptcy situation is assessed by the court. Your mortgage is added to the amount that you owe in a bankruptcy proceeding, and it stops all creditors, including mortgage lenders, from taking action to repossess your property. For this, you need the assistance of a bankruptcy attorney to begin the process quickly and put a hold on your foreclosure.
Contact a Bankruptcy Attorney
If you find yourself in foreclosure, then you are likely in a bad financial position overall. Bankruptcy may help you overcome your debts and start your financial life anew without losing your house or other assets. Contact a bankruptcy attorney for foreclosure legal advice and help to start the bankruptcy process. Contact Kain + Henehan by calling (612) 438-8006 or filling out the online form.
