6 Ways To Deal With Foreclosure

Bankruptcy Attorney in Erie, PA

If you are struggling with foreclosure or if you are a landlord that has been faced with eviction, the following tips will help you find the best way to deal with your issues. These steps can be followed during bankruptcy proceedings and they will provide some relief and peace of mind to those dealing with mounting debt.

 

Be Your Own Banker

Know what items on your balance sheet are of significant value. If you have a large amount of equity in your home, then consider living in it as a lender would. This means that you should be making the payments as if you were the bank. For example, if your mortgage payment is $1,200 per month, make that payment yourself and start saving the difference. If you don't have the money on hand to make a lump sum payment on the principal amount of your loan, then work with your realtor to find a way to sell it at the current market value and apply those funds towards your loan balance. On the other hand, if you have a house that has been foreclosed on and is in foreclosure, consider renting it out on a month-to-month lease instead of selling it. This will provide another source of income and can help keep you afloat until June or when your case is resolved.

Get Yourself A Certified Financial Planner

If you have done your calculations and discovered that the extra cash coming in from renting the house to a tenant will not keep your head above water, then consider hiring a qualified financial planner to give you guidance. This way, you'll know what steps to take before taking any action and will also have some backup should things go south. In short, hiring a planner is better than taking an impulsive action that may end up costing you a lot more money in the long run. Though it is not free, finding a qualified planner can help you make informed decisions.

Seek Legal Help

Think back to the last time that you wanted to take legal action against someone and how many options did you have? Most people would just walk into the courthouse and file their complaints without any legal representation in place. If you find yourself with foreclosure on your record, consider speaking with a bankruptcy attorney before taking any legal action that could prevent your case from being successful before court.

Seek Professional Help

Foreclosure is a messy situation and can be very stressful. It's not unusual for people to take a number of financial and legal decisions without the help of an objective third party. Make sure that you contact a professional organization that will work with you to get your financial house in order before taking any action. For example, if you have been injured in an accident, you will want to contact an attorney who is experienced in handling health care cases to represent your best interests in the event that you are unable to pursue your individual case. In essence, a lawyer can be your advocate as well as your advisor during this trying time.

Don't Go It Alone

It is very tempting to work on your own in order to save money, but doing so will likely make your situation worse. It's much better to hire a professional who knows the best way to deal with your financial and legal issues. When it comes to foreclosure and bankruptcy, there are laws that must be followed and these professionals know how best to proceed. This could save you a lot of time, effort and money in the long run!

For more information about how Erie bankruptcy attorney Jeremy Rosenblum can help you during this troubled time, please visit www.JeremyRosenblum.com or call (814) 834-6055.

This article is for informational purposes only and should not be construed as legal advice. For specific questions about your legal matter, please contact an attorney. No communication by Jeremy Rosenblum or his law firm with any person, via e-mail and/or otherwise, will constitute a waiver of the attorney-client privilege or confidentiality established herein.

What Is Foreclosure? – Foreclosure occurs when the borrower has failed to make payments on time and the lender decides to file a lawsuit against them in court in order to recover the amount owed on their mortgage loan. In most cases, foreclosure occurs because the borrower fails to make two out of three consecutive payments (e.g., mortgage payments, property taxes and insurance). The foreclosure process involves three steps.

Contacting the borrower. Before a foreclosure can proceed, the lender must notify the borrower of their intention to file a foreclosure lawsuit against them and offer them an opportunity to avoid or postpone the filing of this complaint by making all missed payments (usually within 30 days). This is known as a "Door Notice". The notice should be hand delivered or sent certified mail. Recording the notice with the appropriate government agency. Once the lender has given up on working with the borrower, they will file this lawsuit against them by registering it in public records (e.g., recorder of deeds office). This is usually done through a third party agency known as a "recording clerk". Issuing an Eviction Notice. This is the third and final step in the foreclosure process. Once the filing with the recorder of deeds office has been completed, a notice will be sent to the borrower informing them that their house will soon be auctioned off to recover all debts owed against it. In some cases, this can take as little as 30 days. However, if a borrower has filed bankruptcy, it can delay foreclosure for up to a year.

What Is Foreclosure Defense? – Whether you have intentionally defaulted on your mortgage payments or not, there are ways to stop foreclosure from proceeding. The first step in this process is hiring an experienced bankruptcy attorney who knows how best to proceed in these types of situations. If the foreclosure defense attorney is able to negotiate a repayment plan with your mortgage lender, then foreclosure may be avoided altogether.

Contacting the Lender. The first step in stopping a foreclosure from proceeding is contacting the lender and negotiating a repayment plan. The quicker this can occur, the better. In some cases, it may be possible to extend all missed payments (e.g., 2 or 3) and pay whatever past due amounts that you have accumulated since your last mortgage payment was made on time (often referred to as "catch up"). This will allow you to make all past due payments by a certain date without incurring any additional late fees or penalties. If you have additional questions about this process, contact a foreclosure defense attorney in your Buffalo, NY area.

Taking Legal Action: What's Next? – If the lender fails to negotiate an agreement with you over the phone or by email within a reasonable time period, then the next step is to file a formal complaint with the court that has jurisdiction over your case. This can be done through the Erie County Clerk of Courts or through their website (http://www.courtinfo.onondaga.countyoferieo.com/clerk/.aspx).

Conclusion: How Much Will it Cost? – The amount it will cost to defend yourself against a foreclosure depends on the type of foreclosure defense that you employ. If you are able to negotiate with your lender and avoid foreclosure altogether, then you will only need to pay attorney fees and court filing fees. Most cases can be settled for around $1,500 – $2,000; however, this number can vary greatly depending on the circumstances of your case.

If an attorney is needed then there may be additional costs associated with hiring an attorney. For example, filing fees vary from county to county and from state to state.