The foreclosure process may create substantial stress and uncertainty. Often, if you are facing foreclosure, you are also handling other challenges in life. In some situations, with the help of an attorney, you may be able to stop the foreclosure process.
What Is Foreclosure?
Generally, when someone buys a home, they need to get a mortgage loan—i.e., borrow money—to do so. The bank is the lender of the mortgage. The new homeowner is required to make payments to the bank to pay back the loan. Foreclosure is the process of the bank taking a homeowner’s property because the homeowner failed to make agreed-upon payments.
Why Does a Lender Foreclose?
The bank forecloses to take the property and sell it. When a homeowner fails to make mortgage payments, the bank loses money. When this occurs, the sale of the foreclosed property is the typical way the bank gets its money back and the loan ends.
Why Do Homeowners Not Make Their Mortgage Payments?
People are unable to keep up with mortgage payments because of a variety of circumstances, including:
- The homeowner lost their job;
- Divorce/domestic troubles led to non-payment of the mortgage;
- The family has suffered an unforeseen emergency or medical crisis;
- The homeowner does not have the correct mortgage account information for making payments;
- A purchase of a second home led to an inability to pay for two residences; or
- Other personal or work-related challenges are taking place.
Troubles in life occur. Even when homeowners try their best, there may be a time when they cannot pay their mortgage.
How Many Payments Can I Miss Before the Bank Will Foreclose?
Usually, if a person is at least 120 days behind on mortgage payments, the bank can begin the foreclosure process. However, home loans/mortgages are contracts. Each contract has terms that include at what point foreclosure can begin.
How Will a Foreclosure Impact My Credit?
A foreclosure stays on your credit report for seven years. It is a very negative mark on your credit. It may limit your ability to accomplish several things. For example:
- To rent an apartment or house, you may need a good credit report.
- If you need to borrow money to purchase a car, you must qualify for an automobile loan;
- Getting a credit card usually requires positive credit;
- If you need a loan to buy a home again, you must qualify for another mortgage loan; and
- Potential employers may require that you have a good credit report for certain jobs.
Along with the loss of your home, foreclosure impacts you in several ways.
Can I Stop a Foreclosure Once It Starts?
If your lender has started or may start the foreclosure process, you should immediately hire an experienced foreclosure defense lawyer. There can be options to stop a foreclosure once it starts. After thoroughly reading your mortgage contract, your attorney may be able to:
- Determine whether the lender has a right to attempt foreclosure;
- Delay a foreclosure attempt while challenging the legality; and
- Stop the foreclosure process if it violates the law;
Or if foreclosure proceedings seem allowed by law, your lawyer can:
- Negotiate with the lender for you to pay an agreed-upon amount and end the foreclosure process;
- Discuss your general circumstances with the lender and develop a loan modification agreement;
- Negotiate a short sale agreement;
- Determine whether state or local rules might benefit you, such as the Covid-19 related laws that halted foreclosures in some states; or
- Attempt to delay the foreclosure.
Foreclosures are complex legal, financial, and real estate matters. It is crucial to have an experienced lawyer defend you in a foreclosure situation. There are options to keep your home.
How Can Vantage Group Legal Services Defend You in a Foreclosure Case?
Vantage Group Legal Services is a unique company with a team of specialized Attorney’s in foreclosure defense. They are a legal service company, not a law firm. Vantage Group Legal Services connects you with an experienced network attorney, typically within 24 hours, that is the perfect fit for your case. Once you retain Vantage Group Legal Services, your assigned network attorney and Vantage’s internal support staff will handle all aspects of your case during your contract with Vantage Group Legal Services.
Foreclosure defense is a primary focus of Vantage Group Legal Services. Vantage Group’s network of foreclosure defense attorneys are chosen because of their ability to win cases and achieve success for their clients. Schedule your free, no obligation consultation by calling (773) 938-4747 or fill out a form on their website.