Are You Facing Foreclosure Proceedings?
When you fall behind on your mortgage payments, typically more than 120 days per federal law, you may find yourself facing foreclosure proceedings from the lender who holds the mortgage on your home. Before starting the legal process of foreclosure, however, you must be officially notified by your lender that proceedings will begin unless you catch up on your payments. Usually, you will have 30 days to do so. Failure to comply will then result in the official legal process where your home will be taken back by the mortgagor so that it can be sold on the open market.
What is the First Step?
Prior to all this and as early as possible, if you wish to fight the foreclosure for valid reasons or if you wish to explore your options for retaining your home, you should get legal advice from an attorney who is experienced in foreclosure protection. At The Gil Law Firm, you can turn to one of our lawyers who can review your case to determine the possibilities and advise you on the best way to proceed that fits your objectives and needs. As a debt relief and bankruptcy firm that has handled thousands of cases throughout Alabama, Georgia, and Florida, we are well-versed in the various ways foreclosure can be prevented or opposed in court.
Facing foreclosure? Contact our Dothan foreclosure protection attorneys at (334) 401-4420 to discuss the particulars of your situation and explore the legal options available to you. Your initial consultation is free.
Foreclosure Protection Options
Depending on the circumstances of your situation, various options may apply in any foreclosure situation.
These can include:
- Filing for a Chapter 13 bankruptcy in which your debt will be reorganized into an installment plan to be paid through the bankruptcy court over a three to five-year time span; as long as you make payments on your home, you can avoid its foreclosure
- Apply for a loan modification with your lender in which the terms of your mortgage are altered into a more favorable arrangement; this can reduce your mortgage payment into one that is more affordable such as through reducing the interest rate, switching to a fixed rate as opposed to a variable rate, or extending the term of the loan
- Apply loss mitigation options if they are available under your mortgage agreement; these options are designed to lesson your loss and may include such things as modifying the terms of the loan, negotiating a repayment plan wherein you add in a partial amount of the arrears to monthly payments, or negotiating a forbearance agreement in which your payments are reduced or suspended for a specific time period after which you will resume payments with an added portion each monthly to make up for arrears
- Short sale in which the lender agrees to allow you to sell the property for less than what you owe in order to avoid foreclosure
- Deed in lieu of foreclosure, in which you as the borrower initiate a deed instrument that transfers all interest in your home back to the lender to avoid the foreclosure process
- Fighting the foreclosure in court due to errors or mistakes made by your lender, such as failing to properly follow foreclosure procedure, being unable to provide proof that it is the legal owner of your mortgage, or because it has made serious mistakes on your mortgage account