Foreclosure Defense

If you have a mortgage that you are having trouble paying or that is “upside down” we can help you through the maze of options that are available to you.

What options are available for problem Mortgage Loans?

  • Loan Modification

A Loan Modification can reduce your loan payment down to 31% of your gross income. This is done by applying through the HAMP program that modifies the terms of the loan in various ways, depending on your loan.

  • Lower the interest rate not lower than 2%.
  • Extend the term. At the servicer’s option, the term could be extended up to 40 years.
  • Forbear (defer) principal. If your payment is still not low enough, your servicer may defer a portion of the principal amount you owe until the maturity of the loan. This is called a principal forbearance. With a forbearance, you will still owe the principal; but repayment is deferred until a later date. This could result in a balloon payment.
  • A portion of the principal could be also be forgiven. This is optional on the part of the servicer. There is no requirement for principal reduction or forgiveness, and there is no guarantee that your servicer will offer principal reduction or forgiveness.

Before the loan is permanently modified the servicer will give you a trial modification, usually for 3 months to see if you are able to make payments and to stop any foreclosure. Your loan can only be modified after you have made all of your trial payments on time and you have sent all required documentation.

NOTE: All modified loans must include an escrow for taxes and insurance.

  • Refinance

If you qualify for a refinance, HARP can help you:

  • Lower your interest rate. The new rate will be based on market rates in effect at the time of the refinance and you will be subject to any associated points and fees quoted by your lender.
  • Lower your payment.
  • Avoid a “balloon” payment.
  • Convert to a fixed rate loan.
  • Save money over the term of the loan.
  • Refinancing into a more stable fixed-rate loan product and avoiding future mortgage payment increases would likely improve your ability to make your mortgage payments over the long-term.

Refinancing will NOT reduce the principle amount you owe. The objective of a refinance under HARP is to help homeowners get into more stable or more affordable loans.

  • Forbearance (Defer Payments)

A forbearance agreement means that you pay only a portion of your regular payment or no payment at all for a specific period of time. There is no program that forces a mortgage servicer to negotiate a forbearance agreement but it is sometimes possible to do so.

  • Deed-in-Lieu of Foreclosure

If you cannot sell your home your mortgage servicer may agree to have you voluntarily transfer the deed to the property to them. This saves them the cost of a foreclosure and helps you avoid the impact of a foreclosure on your credit rating.

Repayment Plan

If you have missed some of your monthly payments, your mortgage servicer may be able to help you catch up by creating a schedule for repaying the past-due amounts. They are not required to do this but sometimes this can be negotiated.

Short Sale

Short Sales are becoming a more frequent form of debt relief. A Short Sale allows you to avoid foreclosure by selling your home to the company that owns your mortgage. You may qualify for such a program if you have a financial hardship your property is worth less than the mortgage balance.

Some companies will discuss a short sale with you but the process is not always easy. There are tax consequences to a short sale. We recommend that you consult an experienced debt relief attorney before completing a short sale.

  • Repayment Plan
  • Short Sale Pre-Foreclosure
  • Chapter 13 to Stop Foreclosure

If you file a chapter 13 bankruptcy and include in your plan a provision that pays the arrearage on your mortgage over time you may stop the foreclosure and save your home. This process does not change the terms of your loan. It gives you time to catch up on your mortgage and does not depend on the agreement of the mortgage servicer.

Foreclosure Defense

In some circumstances the mortgage servicer has no right to seek foreclosure of your home due to legal defects in the process. If you object to the foreclosure complaint when it is filed you may be able to stop a foreclosure.

  • Foreclosure Defense
  • Help for Military Families

If you are a military family then you have special rights under the Soldiers and sailors Relief Act that will help you prevent a foreclosure. You must take specific steps to inform your servicer in order to take advantage of these provisions. We can assist you if you qualify.

We provide bankruptcy and other legal services to clients the following counties: Athens, Belmont, Coshocton, Delaware, Fairfield, Fayette, Franklin, Gallia, Guernsey, Harrison, Hocking, Jackson, Jefferson, Knox, Licking, Logan, Madison, Meigs, Monroe, Morgan, Morrow, Muskingum, Noble, Perry, Pickaway, Pike Ross, Union and Washington.  We are a debt relief agency. When appropriate, we respectfully help people file for relief under the Bankruptcy Code.