It can be unnerving when a homeowner is behind on the mortgage and unsure of exactly when the foreclosure process is going to result in the locks being changed and the possession of the house moving to the bank. Timelines and statutes of limitations are different in every state and in every situation. When you have not paid your mortgage for a long time, you need to be prepared so you aren’t tossed out of your house at a moment’s notice. The mortgage lender will probably pursue a steady set of collection activities before they finally have the authorization to foreclosure and take the property away from you.
A loan modification is one way to avoid a foreclosure and get back on track with your house payments. It should not be used as a simple delay tactic, however. There are several very good reasons to begin the modification process, but the process needs to be a cooperative venture between you and your bank if it’s going to be successful. A modification can help you adjust the amount you owe or the amount you pay every month based on your current financial situation and your good faith to catch up with your payments. If you have no intention of paying your mortgage again, a modification is not a good idea.
Another reason this will not work to delay foreclosure is that filling out the modification paperwork will require a lot of personal and financial information. You’ll need to provide detailed documentation on your income, your assets and your liabilities. This is information that your lender can use against you during a foreclosure or while trying to obtain a deficiency judgment against you after a foreclosure.
If you are struggling with your mortgage and you’re not sure how to avoid a foreclosure, talk to an experienced attorney who can help you. Your lawyer can negotiate with the bank and make sure you are protected through the entire process.
Stephen K. Hachey, a Florida real estate attorney, can help your wade through this process and determine a positive solution. Contact him at 813-549-0096.
The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.