Why Fight Foreclosure When I Have Little Or No Equity In The Property?
You need to determine if the costs involved in defending a foreclosure is cheaper than the cost of renting a place to live. Many clients retain William T. Shaffer Law Group to defend against foreclosure. What this does is it forces the lender to prove their case. Though, defenses without merit can not be asserted, never forget, your lender must first prove conclusively that you defaulted on your mortgage. Why concede this. Make them prove their case. By doing this you may be able to stay in your home for 5-6 months. Other options might open up during this time frame.
A well presented mortgage foreclosure defense will not typically avoid a borrower's responsibility to repay their past due mortgage payments. However, in most instances, by a borrower asserting his or her rights and forcing their lender to prove their case, the result is that property owner stays in their home for an extended period of time.
Are You Sure You Have No Equity?
Sometimes this determination is easy. But, do not assume you can always figure this out yourself. Unless it is obvious, seek the opinion of a real estate property professional. Find such a person who not only works at real estate full-time, but also someone who knows your neighborhood. Consult with them to discuss what your house is actually worth. As a general rule of thumb, if this figure is more than 10% greater that what you owe on all outstanding mortgage balances, there is a good chance you might have some equity.
If this is the case, you need to develop a plan on how to protect the equity, or your right to keep your home. If you simply fell a few months behind due to a job layoff, and are you are now again working you might be able to convince your lender to work with you.
However, please be careful! Once you are served with foreclosure papers, just because the lender is talking to you does not mean the foreclosure case is not moving forward. Working with the lender's loss mitigation department does not change things as far as the court is concerned. Often lender's loan mitigation representatives are just passing time. They're real goal is not trying to make a deal in your best interest. Often, they are just leading you on. They do this so that you do not get an attorney to defend the foreclosure. It makes their job easier. The next thing you know; you get summary judgment hearing notice on the foreclosure. At this point, typically, you are procedurally in deep trouble in the foreclosure. Typically, at this point the lender's attorney has obtained from the court a default judgment against you for not properly answering the foreclosure complaint.
Even should a default be entered against you, provided you file bankruptcy before the hearing you can likely stop the Circuit Court Judge from entering a judgment. William T Shaffer Law Group, P.A. also provides bankruptcy information and services. During bankruptcy you often have the option of selling your home, paying off the mortgage and walking away with Your equity.
If you have been served with a foreclosure, Contact the firm for a free consultation with no obligation. Or to get started immediately, complete our Bankruptcy Intake Form.
