Every month, over 80,000 new families go into home foreclosure across the United States. Home foreclosure can be a stressful, scary, and emotional experience, but it is not a situation that you need to face alone. The knowledgeable bankruptcy attorneys at the Cornwell Law Firm in Duluth have helped many families facing foreclosure and can walk you through your last-minute options. To learn more, call or contact the office today to schedule a consultation of your case.
If the property is worth less than the remaining mortgage, one option is to short sell the home. A lender may approve a short sale if they believe that the sale will make more money than what they would make in foreclosure. A lawyer can help review the purchase agreement and assist with every step of the short sale process.
Reinstatement of the Mortgage
Another last-minute option to stop a home foreclosure is to reinstate the mortgage. Reinstatement involves making the payments to become current on the loan. In addition to the missed payments and the current month’s payment, reinstatement may also involve paying additional late fees, interest, and other costs. This is typically the hardest and most expensive option.
Loan Modification Application
A lawyer can also help with submitting a loan modification application to the lender. This can result in lower payments with better terms, but the debtor must typically show some type of financial hardship. A loan modification can include a longer-term or a lower interest rate that allows the homeowner to make the payments at their current income level.
Government programs can also be a last-minute option to avoid home foreclosure. The Making Home Affordable (MHA) Program can help homeowners with the financial hardship that are facing foreclosure by adjusting their monthly payments and lowering their interest rates. Other programs that may help include the HAMP, HARP, PRA, and 2MP programs. An attorney can review these government options, explain the differences, and advise which may be the right one for you.
Request a Mortgage Forbearance
Mortgage forbearance is a temporary last-minute stop to a foreclosure proceeding, but it typically only grants the homeowner a month or two of leniency before foreclosure proceedings continue. A forbearance is a special consideration to stay a foreclosure because of a significant financial hardship that resulted in missing a couple of payments on the mortgage. Examples include losing a job, losing a loved one, hospitalization, or a substantial decrease in income.
File for Bankruptcy
The last option for homeowners facing serious financial strain is to file for bankruptcy. A top-tier bankruptcy attorney can help you file for Chapter 7 or Chapter 13 bankruptcy, which places an automatic stay on any foreclosure proceedings on the home. Once in bankruptcy, creditor claims will be prioritized and paid off or erased, and this can save your home from foreclosure. To learn more, talk to a bankruptcy attorney today.
Call or Contact Cornwell Law Firm Today
If you are interested in learning more about the last-minute options to stop home foreclosure, talk to the Cornwell Law Firm in Duluth today.