Foreclosure is a nightmare for anyone who owns a home and is in debt. Not being able to pay your bills can quickly lead to a situation where you may lose your home. As scary as that is, you may be able to prevent foreclosure with the help of a foreclosure prevention attorney. They can help you find the best way to save your house from foreclosure.
How Foreclosure Works
When you fail to meet the payment terms of your mortgage, the bank can start a process to reclaim the house since it was used as collateral for the mortgage loan. This process is called foreclosure. The important thing to remember is that foreclosure is a process that has steps and takes time, giving you the chance to do something about it before it is too late.
Foreclosure usually takes months, if not years, to finish putting you out of the house. The bank has to follow strict procedures according to the law, and you can do things during that process to fix the situation.
What a Foreclosure Prevention Attorney Does
Foreclosure prevention attorney services focus on ways of preventing the foreclosure process from finishing or even starting, if possible. The key to foreclosure prevention is finding a way to catch up on your mortgage and prove to the bank that you can make payments. There are several methods to do this.
Mortgage Renegotiation or Reinstatement
If your bank is willing, you may be able to have your foreclosure prevention attorney renegotiate your mortgage. That way, the monthly payments can be reduced to something that you can afford, although you may need to trade for a longer loan, for example. This could work in the bank’s favor as a longer loan period also means more money for them overall. However, banks are not required to renegotiate and may not be willing to.
Mortgage Reinstatement
Alternatively, your foreclosure prevention attorney can ask for a mortgage reinstatement. The reinstatement is a set of terms that you need to fulfill to bring your mortgage back into good standing and have the bank stop the foreclosure process. In most cases, it includes an amount that you have to pay to catch up on the mortgage, along with proof that you can make payments. Your lawyer may be able to help you find a way to make the payment or negotiate a smaller one that you can afford.
Bankruptcy
If you are behind on more than just your mortgage, then maybe bankruptcy is the way to resolve your foreclosure problem. In bankruptcy, homes up to a certain value are protected from seizure by creditors, which includes banks that hold your mortgage. The bank won’t be able to take your house, but you still have to resolve the issues with your mortgage. Declaring bankruptcy may help you with your other debts so that you can focus on paying the mortgage on time.
Discuss Your Case with a Foreclosure Prevention Attorney
When foreclosure is looming just over the horizon, it’s time to seek legal help. Contact a foreclosure prevention attorney for help. Foreclosure prevention attorney services include helping you find a way to prevent foreclosure, as well as handle your other debts so that you have a chance of keeping your home. Call Kain + Henehan, bankruptcy attorneys in St. Cloud, Minnesota, at (612) 438-8006 or use the contact form to schedule a consultation about your case.
