Thanks to the recession of the past decade, the word foreclosure has become part of our every-day lexicon. In most major areas from Seattle in the Northwest to Phoenix in the Southwest to the entire state of Florida, foreclosures made headlines as thousands of families lost their homes.
The housing market is bouncing back, but an untold number of homeowners remain “upside down” in their homes and are having to make tough decisions about keeping their homes.
What is foreclosure
Simply stated, foreclosure is the legal process that allows a bank or a lender to assume ownership of a property after the borrower misses payments and is listed in default.
The foreclosure process of a residential home can be a lengthy process. If a homeowner misses a few payments, it’s unlikely he or she will be kicked out of their home immediately. This process could take as little as six months and up to a couple of years.
Despite that the foreclosure process takes time, homeowners should not delay taking steps to secure their future; act immediately. Simply doing nothing is the worst strategy. Home foreclosure eventually will take place and the longer you wait to address the problem, the fewer the options you will have by the time the notice is posted on your door telling you that you have 30 days to vacate. But don’t try to navigate the foreclosure waters alone. A real estate attorney can help you land on your feet quicker and in better financial standing with the chance to rebound quicker.
Why hire an attorney
Why hire an attorney who specializes in mortgage delinquency and default resolution counseling? If you are trying to delay the inevitability that you are going to lose your home, hire an attorney. Law Offices of Walsh & DeMontesquiou say, “Never try to go it alone if you plan to keep your home by fighting the foreclosure in court because of predatory loan issues or if you plan to file for Chapter 13 bankruptcy. Other reasons to hire a foreclosure attorney are many.”
* An experienced attorney who is well connected, understands the process and can eliminate much of the red tape.
* An attorney who specialized in foreclosures must keep up to date on changes in the laws and process to remain licensed. You won’t be left in the dark when it comes to new laws
* A foreclosure attorney can reassure the homeowner and give them hope that things will get better.
Get organized
Housing and Urban Development counselors can help the homeowner gather the necessary documents to proceed before a foreclosure attorney is hired. These counselors can advise on how to document conversations with the lender and guide you to organizing your documents from when you signed the mortgage papers to all the letters you have received from a lender.
Finding a lawyer
Web searches are where most people start, unless they have a foreclosure attorney who has been referred to them. Finding an attorney who you can trust might be like looking for a needle in the proverbial haystack. But there are sources to turn to for help such as Legal Services Corp. and the Institute for Foreclosure Legal Assistance. The American Bar Association has data on all attorneys. But the best way might just to ask your friends and family if they know of a reliable attorney.
Know your endgame
When hiring an attorney, make it clear what you want from your foreclosure proceedings. Do you want to walk away from your property entirely? Is there an issue with predatory lending and are you seeking a new loan? Are you just trying to avoid a deficiency judgment? Be clear in your goals and remember you’re hiring an attorney, not a best friend.
Red flags
Avoiding scam artists can be tricky. Finding the right attorney can save the homeowner tens of thousands of dollars in fees, especially if your goal is to have a loan modified. Think twice when hiring a lawyer who guarantees “I can help save your house” or “There’s no hope” without looking at the facts and financial figures. All loans cannot be modified and all homes cannot be saved. Also, be wary of those attorneys who charge a fee upfront or one who offers to redirect mortgage payments to a third party to make to the lender. It also doesn’t hurt to ask just how busy the attorney is and try to get a timeframe for the process.
