Anyone facing foreclosure will likely admit that it can be a stressful and overwhelming experience. Whether you are a homeowner who is struggling to keep up with mortgage payments or have already received a foreclosure notice and are unsure about what to do next, it’s important to understand your options. Fortunately, a Burleson foreclosure lawyer can step in to help you navigate this complex legal process and explore potential defense strategies.
At Steele Law Firm, we understand how emotionally and financially taxing a foreclosure can be on individuals and families. Our team of asset attorneys is dedicated to providing quality legal strategies that tackle the root cause of the issues at hand. Whether we need to negotiate with lenders, explore loan modifications, or pursue bankruptcy as a last resort, we work with our clients to prioritize their rights and keep their interests at the forefront of the conversation.
Foreclosure is a complicated legal progress that requires homeowners to act quickly and strategically. Having a foreclosure lawyer can better help you understand your options and protect your home and financial future from disaster.
Some of the most effective legal strategies in these cases include:
A loan modification involves working directly with your lender to adjust the terms of your mortgage or to find a creative solution that makes payments more manageable. This may include reducing the interest rate, extending how long the loan is, or adding all of your missed payments to the end of the loan so that you no longer have a stressful period of catching up. Modifications can keep Texas homeowners in their home and avoid the prospect of foreclosure.
A forbearance is a temporary pause or reduction in your mortgage payments granted by your lender. It can be a useful option for anyone facing short-term financial difficulties that will not last forever. While the forbearance will not erase your missed payments, it can give you some much-needed breathing room to financially recover while creating a long-term plan for repayment. An attorney can help ensure the terms of this arrangement are fair and do not exacerbate your strenuous financial situation.
If you choose to file for bankruptcy, particularly Chapter 13 bankruptcy, it can stop foreclosure proceedings through an automatic stay. With Chapter 13 bankruptcy, you are allowed to reorganize your debts and establish a repayment plan. This includes catching up on past-due mortgage payments. However, bankruptcy can impact many facets of your life; the decision to file for bankruptcy should not be made without the guidance of a bankruptcy and foreclosure attorney.
In some cases, lenders might not be allowed to follow proper procedures when initiating foreclosure. For example, making errors in documentation or not providing proper notice can make the foreclosure invalid. After reviewing your case, a foreclosure lawyer may be able to identify any irregularities and challenge the lender’s actions in court.
If it’s not possible to stay in your home, you may want to consider a short sale or deed in lieu of foreclosure to avoid the negative impacts that a foreclosure can have on your personal credit report. A short sale is the process of selling your home for less than what you still owe your mortgage provider as long as the lender approves. A deed in lieu of foreclosure allows you to transfer the property back to the lender in exchange for canceling the debt owed.
A: Yes, it is possible to stop a foreclosure at different stages in the process. Some common tactics to stop it from moving forward include negotiating with your lender for a loan modification, forbearance, or working together to create a repayment plan. The earlier you can act, the more options you may have to prevent losing your home permanently. A foreclosure lawyer can help you understand which route may yield your desired results.
A: A judicial foreclosure involves the lender filing a claim that the court must approve. On the other hand, a non-judicial foreclosure occurs outside of the court system. Texas primarily uses non-judicial foreclosure, which has a reputation for being faster and cheaper for lenders. Regardless of which type you move forward with, attorney guidance is crucial to understanding the process; it can empower clients to act quickly and protect their rights.
A: The foreclosure process in Texas is relatively fast compared to other states, taking as little as 60 to 90 days in some cases. Once the lender sends a notice of default, the homeowner must act fast to cure the default by making up missed payments. If the issue is not resolved, the lender will issue a notice of sale. The homeowner must be made aware of a potential foreclosure auction to give them a chance to rectify the issue.
A: The foreclosure process can have a significant impact on your credit score, lowering it by 100 points or more. If the foreclosure is finalized, this can remain on your credit report for up to seven years. Foreclosure makes it more challenging for you to secure loans in the future, rent a home, or even qualify for an affordable interest rate. The extent of how much damage you face depends on your credit history prior to the foreclosure.
If you have recently learned you are facing foreclosure, you must act right away. At Steele Law Firm, we want to help you protect your rights and inform you of all the viable paths we can pursue to save your home. Contact us today to tell us more about your situation. Get started on safeguarding your home and financial future with an experienced Burleson foreclosure lawyer.
