Strategies For Keeping Your Home In A Foreclosure
Being at risk of losing one’s home through foreclosure is probably one of the most stressful experiences a person can go through. Fortunately, there are certain steps that homeowners can take to prevent the loss of their homes when they are dangerously late on their mortgage payments.
At Whiteman Law, in Chicago, our attorneys can provide you with guidance as to which options might work for you. In the information below, our firm has listed some of the common foreclosure defense strategies that allow individuals to keep their homes.
Negotiating With The Lender
In some cases, the homeowner and the mortgage lender are able to reach an agreement that makes it easier for the homeowner to afford his or her monthly payments. This can be achieved through a loan modification, which can lower the interest rate and/or extend the life of the loan. These actions allow the homeowner to have lower monthly payments. Another option is to negotiate with the lender for a debt settlement, which is an agreement to lower the overall lower mortgage debt amount. A second mortgage lender may be more likely to enter into a mortgage settlement agreement since this type of lender is at a higher risk of suffering from a financial loss in the case of a foreclosure.
Filing A Countersuit
Mortgage lenders have various rules and regulations that they must follow when originating loans and foreclose on properties. When they violate these rules and regulations, this can create grounds for homeowners to file counterclaims against their lenders in foreclosure proceedings. In some cases, the lender’s violations may even be considered fraud. An attorney can help you assess the situation and determine whether you are entitled to a countersuit.
If you are willing to part ways with your home, you may want to also consider other foreclosure defense options, such as the following:
This option is usually used by homeowners who have underwater mortgages, meaning they owe more on their homes then the homes are actually worth. With a short sale, the homeowner gets permission from the mortgage lender to sell the property for an amount that is less than the loan amount. After the sale, the homeowner can receive a waiver of deficiency that frees him or her from the rest of the debt obligation.
Deed in Lieu
With this option, the homeowner becomes released from the remainder of his or her mortgage debt by surrendering the deed to the mortgage lender.