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Avoiding Foreclosure: Alternative Options to Consider

The number of foreclosures throughout the nation continues to increase. According to the FDIC, one out of every 200 houses will be foreclosed. However, working with a foreclosure attorney can help you understand that you have other options. There are several alternatives every homeowner should consider.

Fighting Foreclosure

An attorney with experience in foreclosure will carefully review every document and foreclosure process to protect your rights. If the other party did not follow the legal process, they may not legally be able to foreclose on your house. Working with an experienced foreclosure attorney is the best way to determine if this is your best idea.

Short Selling the House

Short selling a house is when the person paying a mortgage agrees to sell it for less than the mortgage is worth. After that, the lender gets all of the proceeds. However, they usually forgive the remaining debt. While this puts the owner at a disadvantage, creditors often view it more favorably than a foreclosure.

Refinancing the Mortgage

Many people choose to refinance their mortgage before foreclosure. In this scenario, a person applies to refinance their home. They wind up with a new mortgage, complete with new interest terms. Usually, people do this to get lower mortgage rates. The lender pays off the old mortgage, so you only have one payment. However, you typically have to do this before you miss any payments. If you’re already in foreclosure, it may be too late.

Mortgage Repayment Plans

Most lenders don’t want to foreclose on homes if you’ve hit a rough patch financially. Instead, they’d work with you. If you’ve only missed a few payments, you may be able to work with your lender to develop a repayment plan. This will let you slowly pay off the back balance owed over time and allow you to keep your home. An experienced foreclosure attorney can help you negotiate with a lender.

We understand that foreclosure can be a scary time. Our experienced team of attorneys will help you review every option possible, including bankruptcy, to determine which route is best for you. We'll consider how the various options will impact your future. Contact us at Wiley & Jowers when you’re ready to schedule a consultation.

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