Residential foreclosure – what you can do to retain ownership of your home
Being faced with bank foreclosure is intimidating given the fact that you could potentially lose the roof over your head. You and your family could potentially become homeless when you were already in a financial slump to begin with because of high taxes, irrational regulations, and a messed up health care situation that used to be much better in the previous century.
However, what most people are oblivious to is the fact that they do have legal options to help avoid foreclosure and retain ownership of their home.
One of the first steps to fighting foreclosure is to reach out to and appoint a sagacious legal counselor who will assess the possibilities, determine what the most effective course of action is and help you execute a plan step by step and oversee it from start to end.
Any borrower who has defaulted on one or more loan or mortgage payments will have to be proactive if they want to keep their home. Loan modification is one option which can be explored and used in most foreclosure cases. However, in some particular cases, an application or request for loan modification may be denied. In such cases, mediation can be looked into as an alternative option to avoid foreclosure and loss of your home.
The process of mediation can have a few different outcomes, these are:
- A loan modification
- A forbearance agreement that provides the borrower more time to catch up on missed payments
- A short sale, deed in lieu of a foreclosure or other option that allows for a dignified exit from your home
