What Are My Options for Defending Against Home Foreclosure?

 Posted on August 19, 2022 in Foreclosure

Financial issues can affect anybody, and if a person or family experiences setbacks such as the loss of a job, they may have difficulty paying different types of ongoing expenses. In these situations, the most important expenses may need to be prioritized, such as being able to buy food and pay for electricity, water, and other utilities, and a homeowner may be unable to also make mortgage payments. If a family falls too far behind on their mortgage, they risk the possibility of foreclosure. This can be an incredibly stressful situation for a person who is concerned about losing their home, and a family will need to determine their best options for defending against foreclosure and resolving other financial issues they are facing.

Steps Homeowners Can Take to Address Foreclosure

A lender may initiate a foreclosure if a homeowner is at least 120 days delinquent on mortgage payments. For homeowners who have been unable to make payments and are concerned about a looming foreclosure or those who have received notice that a lender is proceeding with the foreclosure process, multiple options for defense may be available, including:

• Reinstatement - The homeowner may be able to catch up on missed mortgage payments, plus any interest, late fees, and other associated costs, which would bring the loan current and stop the foreclosure process.

• Repayment plan - The lender may agree to stop foreclosure proceedings and create a plan that would allow the homeowner to make up missed payments over time. This will usually result in a temporary increase in mortgage payments until the past-due amounts have been paid.

• Forbearance - If a homeowner is experiencing temporary financial issues, the lender may allow them to "pause" their mortgage payments for a limited time while also agreeing not to proceed with a foreclosure. After the forbearance period ends, regular monthly payments would resume, and the payments that would have been made during this time will typically be added to the end of the loan.

• Loan modification - The terms of the loan may be modified by the lender, which could lower the monthly payments to an amount that is more affordable for the homeowner. Modifications may include adjustments to the loan's interest rate, an extension of the term of the loan, or adding missed payments and related fees and penalties to the principal of the loan. 

• Bankruptcy - Filing for bankruptcy will stop foreclosure proceedings, and by eliminating other debts, it may ensure that a homeowner will be able to afford ongoing mortgage payments. Chapter 13 bankruptcy is often the best option for homeowners, and the repayment plan that is set up in a Chapter 13 case may allow the debtor to pay off missed mortgage payments and penalties over time.

• Litigation - A homeowner may be able to take legal action to contest a foreclosure. These cases will usually address a lender's right to foreclose on a home or mistakes made by a lender during the foreclosure process, such as failure to provide the proper notices or follow the correct procedures. 

Contact Our San Antonio Foreclosure Defense Lawyer

Facing foreclosure can be an extremely stressful experience, and homeowners may feel like they have nowhere to turn. At the Law Offices of Chance M. McGhee, our Kerrville bankruptcy and foreclosure attorney is dedicated to helping clients find solutions to their financial problems. If you are facing foreclosure or other debt-related issues, we can help. To schedule a complimentary consultation, call us today at 210-342-3400.

Sources:

https://www.law.cornell.edu/cfr/text/12/1024.41

https://library.nclc.org/defending-home-foreclosure-consumer-debt-advice-nclc

https://www.usa.gov/foreclosure