Home foreclosure can inflict financial and emotional damages to a family and can cause feelings of insecurity, embarrassment and failure. Fortunately, foreclosure is also preventable, but you have to take active steps and know what you can do to prevent it from happening.
The best thing that you can do to avoid foreclosure is preventing it from happening in the first place. You have to stay in touch with your lenders and do not ignore their calls and letters. If you encounter problems in payments, then you can contact your lender before you miss a payment. Ignoring notice and phone calls from your lenders can send that wrong message that you do not care about your property at all. Remember that most lenders do not also want to pursue foreclosure since it can cause time and money and only do it as a last resort when you cannot pay them anymore.
Get expert insight
Talk to a Long Island foreclosure attorney if you are unsure about the process of foreclosure and if you want your case to be assessed. This gives you knowledge and confidence on how you can negotiate with your lender.
Foreclosure attorneys have ample experience when it comes to foreclosure and they can help you draft a proposal that can also be beneficial to you. With the assistance of an attorney, you can have temporary relief from payments or renegotiate your loan so that you have better chances of paying it. Possible options include forbearance and mortgage modification. Forbearance means that you are allowed to suspend the payment for the time being and then resume them under the original term of contract after the forbearance period. This is mostly applicable if you lost your job and do not have a steady form of income just yet.
Mortgage modification involves modifying the terms of your loan to become more affordable. This includes lowering the interest or reducing the total amount of principal payment. Even though you can talk to the lender directly, the end result is not always a success. Having a Long Island foreclosure attorney can help look for solutions for both you and your lender.
Reinstate your mortgage
If you do not have sufficient cash to reinstate your mortgage and cannot pay all of your pending balance, then you can receive a sufficient amount of time after the notice of foreclosure where you have the right to reinstate your loan.
You can still reinstate the loan any time before the final foreclosure is dismissed and anytime before the sale. You can work with a Long Island foreclosure attorney to help you with the paperwork needed to reinstate your mortgage. Lenders are also willing to give you enough time if you can find the means to pay them back instead of foreclosing the property which can be difficult to sell in the market.
You can also refinance and look for a better rate to be able to pay off your loan and start fresh. However, finding a good refinancing loan is difficult unless the home value is increasing. A Long Island foreclosure attorney can advise you on how you can find a good refinancing and decide if it is the best solution for your problem.
File for bankruptcy
The most drastic step that you can do is filing a bankruptcy where you might have better chances of having your loan terms modified. This can damage your credit standing, but you can apply for another mortgage in two years.
Hiring a Long Island foreclosure attorney can help you think of ways to avoid foreclosure and help you keep the house that you have worked hard for.
The lender must go through Young Law Group, correct process of foreclosure