Though navigating the ins and outs of real estate foreclosure isn’t always a simple matter, many homeowners often do successfully make it to the tranquil shores on the other side. The ultimate goal of a foreclosure defense is to avoid a final judgment. This means doing whatever possible to come to terms with your lender in order to halt the foreclosure and avoid having the property going to foreclosure sale. Here are a few examples of an effective foreclosure defense:
Loan Modification – The most common method of avoiding foreclosure is to renegotiate the terms of your loan in order to lower your monthly payments and remain in your home.
Short Sale – If a loan mod is not feasible, a short sale may be the next best thing. In a short sale, your lender agrees to allow you to sell the property for less than the mortgage debt.
Deed-in-Lieu – A deed-in-lieu allows you to convey all interest in the property back to your lender, satisfying the loan and allowing you to circumvent the ruinous effects a foreclosure can have on your credit.
Deficiency Waiver – When a property sells for less than the balance owed on the mortgage, the difference is a deficiency and you remain liable for that difference. If you do agree to a short sale or a deed-in-lieu, be sure to make the release of any deficiency part of the contract with your lender.
With a proactive attitude and the help of a professional, you can indeed come out of foreclosure proceedings with your head held high and healthy pockets. Lenders are often willing to work with underwater borrowers looking for alternatives; consult with an experienced foreclosure attorney and explore your options.
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.