The process of foreclosure happens when you are unable to make the mortgage payments each month and the lending company initiates a process to repossess your home. This usually happens after a few missed or late payments as well as a warning. The entire process usually takes about 8 months from the time you receive notice of the foreclosure to the time you must vacate the property. This situation can be especially complicated when the homeowners are going through a divorce.
There are ways to stop, slow down, or postpone the foreclosure process. You should discuss these options with an attorney to determine what strategy is best for you. If home foreclosure is an issue that you are facing, we can help you find a solution, such as short sale, loan modification, or deed in lieu.
Which is Right for Me?
Some of the questions you will need to consider when it comes to bankruptcy and foreclosure are as follows:
- How big is your mortgage debt? It is possible that your monthly mortgage payment is causing you financial distress. If this is the case, we can come up with an alternative to foreclosure that allows you to sell your home without losing it to the bank. A short sale is one great option.
- If you were debt-free, could you handle the mortgage payments? Take away the credit card debt, medical bills, utility bills, etc. Are you able to keep up on your mortgage payments without these debts? If so, then bankruptcy may be a good option for you.
- Would you be able to afford the mortgage payments if on a different home loan plan with lower monthly payments? If so, a loan modification might be in your best interest
- How much is your home worth in regards to the mortgage value? We can get an appraiser to determine your best real estate investment options.
- Are you willing and able to move to another location? Would you consider renting or staying with family?
- How will foreclosure affect your life? Do you have children to worry about or are you on your own?
These are all important questions to ask yourself and discuss with an attorney. If you have received a notice of foreclosure or feel that you may be facing foreclosure in the future, contact an attorney at Heimerl & Lammers today to discuss your options.
Deed in Lieu
Every person’s financial situation is different. In some cases, a deed in lieu of foreclosure may be what is ideal to put an end to a difficult financial situation. A deed in lieu of foreclosure allows a transfer of your deed to your financial institution, which allows you to avoid home foreclosure and, in many cases, you can have your entire amount of your mortgage deficiency discharged. Both parties must agree to this transaction, which is one that is carried out in good faith.
The U.S. Department of Housing and Urban Development defines a deed in lieu of foreclosure as the voluntary exchange of the home’s deed for the release of the debt. This is not an option that is available to everyone, such as the person who is able to repay their mortgage. This tool is not one to be used in helping a person get out of paying their debt.
For more information: http://portal.hud.gov/hudportal/HUD
Is Bankruptcy the Best Option for You?
For many, the opportunity to avoid bankruptcy has passed, and there is truly no other alternative that makes sense. Choosing to file for bankruptcy is a decision that you need to make; do not rely on what your parents, neighbors, or co-workers have to say. Although you will most likely value their opinion, it is best to keep the decision to file bankruptcy personal.
We can provide you with a free consultation to assess your situation and determine if bankruptcy is the right option for you. Call Heimerl & Lammers today to discuss your options.