Legal Methods for Stopping a Home Foreclosure

Following the real estate market crash, people all over the country lost their homes to foreclosure, along with many more to short sale. Last year, the number of foreclosures hit the lowest level since 2006. As of January 2015, foreclosures dropped another 2.7 percent, bringing the total number to a consecutive 39-month low.

Throughout the past eight years, more than 5 million people have lost their homes. As of six months ago, 549,000 homes in the United States were in some stage of foreclosure. While the economy has started to improve, there are still many homes at risk. In fact, according to several experts, there is a good chance that next year, numbers will begin to reverse, leading to another spike in the number of foreclosures.

Rather than vintage loans being the problem, experts believe the new crisis will be caused by emergency relief measures coupled with long-standing issues. Payments for home equity lines of credit will begin to increase, forcing more people out. Once the temporary relief begins to fade, a significant number of homeowners are predicted to go back into a default status. Simply put, rather than the foreclosure issue being resolved, experts say it was only deferred.

Seeking Legal Assistance

Most people believe that once the foreclosure process begins, nothing can be done to stop it. In reality, with the services of a qualified attorney, options are available. For people who took advantage of a relief program, this is the time to learn about solutions to stay out of a foreclosure status. For those already in the battle, there is hope.

If you are facing a potential foreclosure or are in the midst of fighting for your home, the best course of action is to have a reputable attorney in your corner. Keep in mind that during the consultation, the attorney will review your situation and then make the appropriate recommendations. The following are just a few of the suggestions that might be provided in an attempt to keep your home out of foreclosure.

  • Bankruptcy – Although no one wants to file for bankruptcy, if you want to save your home, this might be a viable option to consider. Having an automatic stay will stop any legal proceedings. Even if the lender files a motion for relief from the stay, it will take a few months, thereby giving you more time to look at alternatives.
  • Loan Modification – Applying for a loan modification is also a possibility. This would delay the foreclosure since the lender could be restricted from dual tracking, which means while the loss mitigation application is pending, the foreclosure cannot proceed.
  • Lawsuit – Another option that most people do not realize they have involves filing a lawsuit. Note that this is only possible if the lender uses a non-judicial process to foreclose on your home. In some instances, this will stop the foreclosure, while other times, it merely delays it.

The bottom line is that you do have options to save your home from foreclosure. Because of new laws and legal loopholes, it is essential to work with a qualified attorney who can provide sound legal advice and guidance.