The thought of losing your home to foreclosure can be quite intimidating, let alone facing the threat in reality. The situation becomes worse when you are experiencing financial difficulties that make foreclosure inevitable. The foreclosure process is long and taxing, but fortunately, foreclosure defense is possible with the help of an experienced real estate attorney. Depending on your particular situation, the attorney will provide the foreclosure defense options available to you and help you get out of the hopeless situation.
Getting Help for Foreclosure Defense
The key to avoid foreclosures is to act as quickly as possible. There are a lot of aspects involved in foreclosure cases, and if your real estate attorney has enough time, they may be able to work with the lenders to reach an alternate solution. The following are some possible solutions that your real estate attorney may be able to achieve:
Loss Mitigation Options
There are some types of loans that have special programs known as loss mitigation. It is a process in which lenders arrive to an agreement with borrowers to mitigate their past-due mortgage payments. Loss mitigation is a great alternative to foreclosure that is aimed at alleviating a â€œlossâ€ of both parties. The foreclosure process is critical for borrowers while expensive for lenders, and agreeing to a loss mitigation option, like partial claim, can create a win-win situation.
This is an agreement between the lender and the borrower that modifies the initial loan terms and conditions, making it easier for the borrower to pay their debts. There are three ways to modify loan agreements:
- The lender decreases the due principle balance;
- The lender reduces the interest rate; or
- The loan period is extended to reduce the amount per month that has to be paid.
Depending on your specific situation, the real estate attorney will help you decide which modification option is favorable, and also make sure that no additional charges are added to the modified legal documents.
Some states, including Illinois, offer foreclosure mediation, in which the lender and the borrower come together to work out an alternate solution in order to avoid foreclosure. Foreclosure mediation is considered a success if:
- The borrower gives up their home to avoid further liability from the lender.
- The lender agrees to loan modification so that the borrower can stay in their home.
The real estate attorney tries to work out the second outcome so that the homeowner doesnâ€™t have to give up your home.
Legal Representation in the Court
If your foreclosure case reaches the court, the real estate attorney may be able to point out errors that the lender may have made or raise certain defenses to avoid foreclosure altogether. Some potential arguments include:
- The lender failed to follow legal foreclosure procedures.
- The lender breached the loan agreement.
- The borrower is actively serving in the military and is safe from foreclosure under the Service members Civil Relief Act.
If the court agrees with your real estate lawyerâ€™s arguments, there is a chance that the court might even dismiss the lawsuit.
If you are facing a foreclosure, you must act quickly and hire a real estate attorney to evaluate your legal options. Contact Casement Group, P.C. today at (847) 888-9300 for a free consultation with an experienced and reliable real estate attorney.