An Attorney Guiding Homeowners Through Foreclosure Problems

Losing one's home is a nightmare scenario for most Americans. Foreclosure feels more personal and disruptive to daily life than other financial issues. And after the mortgage crisis that started the Great Recession, it has become clear that lenders do not always act ethically or responsibly.

If you are homeowner with a troubled mortgage, you do have some options for both foreclosure defense and mitigation of consequences. To better understand and utilize those options, it is a good idea to work with an experienced firm like McCrystal Law Office.

Facing Foreclosure: What Happens Next?

Generally speaking, there are five options when your home is or will soon be in foreclosure.

Option 1: File a response to the foreclosure complaint You can fight the foreclosure action in court when you believe the mortgage company has made a mistake or has done something that violates the law (such as "robo signing").

As just one example of a mistake, many homeowners make regular payments but the mortgage company puts those payments into an escrow account and then claims they never received them. This creates unwarranted late fees, attorney's fees and other problems.

Option 2: Pursue a mortgage modification This involves renegotiating the terms and interest rates of your mortgage loan. It often also involves adding missed payments to the end of your loan.

Despite what many people believe, the mortgage company is not obligated to charge you a rate you can afford if circumstances have changed. When you request a modification, the mortgage company is going to examine your current finances as though you were a first-time borrower. If they wouldn't approve you as a first-time buyer, they probably will not approve a mortgage modification.

Option 3: Deed in lieu of foreclosure This means transferring the title of the property to the mortgage company and you moving out. Although it means losing your home more quickly than you otherwise might, it does have some advantages.

In traditional foreclosure, a great deal of money may be spent on attorney fees, moving in a hurry, sheriffs costs, inspections, fees and other expenses. A deed in lieu of foreclosure accelerates the sheriffs sale process and conserves money for both you and the lender.

Option 4: Filing chapter 13 bankruptcy You can free up money by reorganizing other debts and then focus on paying your mortgage. Chapter 13 is a good way to keep your home in bankruptcy.

Option 5: Short sale Selling the house is usually a quick option, but we don't usually recommend it unless you can sell for close to what you owe or at least what the house is worth. If you sell for far less, you then have another problem to deal with.

Discuss Your Foreclosure Options With An Experienced Lawyer

Based in Emmaus, Pennsylvania, McCrystal Law Office serves clients throughout the Lehigh Valley area. To schedule your initial consultation, call us at 484-272-2014 or send us an email.