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Why Fight Foreclosure in Texas?
Reasons for Fighting Foreclosure in Texas
For those who have already received a foreclosure notice from the lender, this notice probably did not come as a surprise. You may have pushed the thought out of your mind, but ultimately you knew this day might come if something didn’t change in a major way. You have certainly already dealt with difficult financial situations as you have continued struggling with your monthly mortgage payments over a period of months and in some cases even longer, as you have tried to work out modifications, etc. You may now simply feel resigned that you will lose your house. Yet, you don’t have to give up and let foreclosure happen. The bank legally holds the financial and legal right to foreclose on your home following mortgage default. But you have rights against foreclosure as well, and through chapter 13 bankruptcy you could even be able to catch the mortgage up over a 5 year period. As you consider your options, and consult with experienced attorneys and team members at the Bright Law Firm, you’ll find that you can almost always arrive at a better outcome by becoming proactive than what you would achieve by doing nothing.
Just as quickly as you hire a DFW foreclosure defense lawyer of the Bright Law Firm founded by Richard Weaver, you’ll have a powerful advocate in your corner to represent you in protecting your rights, fighting the bank if necessary, an immediately helping you to conduct a careful financial investigation regarding your situation so that you can find out if you can stop the foreclosure. Some situations lead to the conclusion that you are a victim of mortgage fraud, mortgage misconduct, or predatory lending by the lender.
Most negative attention regarding foreclosure typically focuses with the borrower being delinquent on monthly payments, yet in truth lenders are frequently to blame with causing foreclosure needlessly among borrowers.
Determining If You Should Keep the Home Or If You Are Ready to Move On/Forward
Suing a bank and going to court are not the only legal strategies to use when fighting a bank’s foreclosure efforts. Some situations involve negotiations with the bank. Sometimes a loan modification is possible, but more commonly, the most powerful defense against foreclosure involves a bankruptcy, and most commonly it will be a chapter 13 bankruptcy. This provides you as the borrower time to catch up the payment. Modifications offer lower payment through the reduction of principal and interest, yet these are difficult to obtain. Other situations extend the number of months on the loan’s terms. In some cases, seeking to negotiate with the bank regarding a deed in lieu would allow you the opportunity of getting the home out of your name while undergoing the least amount of financial and legal liability regarding the home. It also minimizes the dent in your finances if you can stop paying the mortgage sooner. Chapter 7 bankruptcy also presents a valid option for making a strategic default on the mortgage.
If you are looking to hire an attorney to stop, prevent, or minimize the negative effects of foreclosure in DFW, you should call the Bright Law Firm today at (214) 617-2500. If your goal revolves about saving your property, or if you seek to move on, our team wants to assist you in any way possible to help you achieve the best possible outcome. Contact a DFW foreclosure defense lawyer today to assist your situation and foreclosure troubles! By Pete Maughan.
Is There a Simple Answer? It Depends.
The answer to whether you should fight foreclosure will depend on how deeply you feel about saving your home. If you are a pragmatist and you know that your house is underwater (i.e. you owe more on the mortgage than what the home is worth) then the answer could be a simple answer that keeping your home would not necessarily be a wise decision. However, if you add into that same equation where your home is underwater, yet paying your mortgage would actually cost you less than to pay rent for a house of the same or lesser quality, then keeping a home that is underwater could definitely make sense.
If keeping up with mortgage payments becomes unbearable, and you get behind, lenders may initiate foreclosure. Upon being noticed with foreclosure, homeowners must be evicted if they let the foreclosure process go to culmination at the foreclosure sale date. At the point the bank would hypothetically put your home back into the real estate market for others to purchase. This foreclosure process can be more than difficult to you as the homeowner. Not only does it involve intensely emotional issues revolving around your sacred home, but the process can also become extremely expensive as well as all-consuming of both your emotions, your time, and your finances. The same can happen for lenders in which they are faced with serious issues. The financial expense for a bank is also extreme, and is estimated to be $55,000 on average in overall costs to the bank for a foreclosed home in the US. Your lender could offer options in order to help you stay in the home, and as you see by the large cost of a foreclosure, it is typically in their best interests. Therefore, the act of avoiding foreclosure in a successful way can be very much be a win-win for the bank and homeowner.
Come Up With a Repayment Plan
When a homeowner receives notice from the law firm representing a bank in foreclosure, you should call your bank and request a workout. Often then will be anxious to accept this. But at other times, this foreclosure notice comes after having fought with the bank over a modification and other workouts. At this point, bankruptcy in chapter 13 could be the only option available. The lender may offer you only a year to catch up payments by spreading the past due payments through a 12 month time period rather than them going through the huge ordeal and financial expense that comes with a foreclosure on a home.
Ask Lender for Mortgage Forbearance
During a mortgage forbearance, the bank forgives a single or multiple monthly mortgage payments in order to allow a catch up with your monthly budge. The missed payment will typically be added to the back-end of the loan in most cases of forbearance, hence the ultimate term of the mortgage is actually increased. However, this is not always an option due to the strict and rigid nature of some mortgage term sheets. Without monthly mortgage installments for a breathing room period of a couple or several months, the homeowner can have the time needed to put away some money and build a cushion and move forward financially. While this is not always an option, if it is, this option is well suited for temporary financial shortages, like a job slowdown or an injury which caused work to be missed for a temporary period of time.
Consider Assets Which Could Be Sold
When a lender is prepared to foreclose on your home, you could consider selling off your expensive possessions. By getting rid of big-ticket assets like unused vehicles or toys, you end up using the extra money towards missed payments on your home. If you come up with the arrears (the amount of money that your home is behind,) then they can stop the foreclosure sale immediately due to getting completely caught back up on the mortgage payments.
Loan Modification and Other Options
In addition to the options above, an option that is extremely difficult, but which can be a huge benefit is a modification on the mortgage loan. If you obtain this, you deserve a medal!
And if these options fail, naturally, we are prepared to help you file a chapter 13 bankruptcy to keep the home! Or in other cases, a chapter 7 bankruptcy can be a good option if you’re looking to walk away and move on to other living arrangements. The chapter 7 would still have the potential to buy you 5-6 months in the home or longer, if you can get the case filed prior to the foreclosure sale, thus blocking and putting off the sale till a later date.