The financial squeeze that’s left millions of Americans behind on their mortgage payments as they watch the values of their homes plummet doesn’t yet seem ready to let up. Many homeowners are weighing their options for foreclosure defense and considering whether it’s better to lose their home to foreclosure or file for bankruptcy protection.
Two Things to Understand about Foreclosure Defense
While neither option is easy, a foreclosure defense attorney can help you weigh the options. One thing that’s important to understand is this: the number of available borrowers right now is severely limited. The real estate investors have largely snapped up the early properties and are either fixing them up or simply sitting on them while they wait out the market.
Another thing to be aware of is the fact that a foreclosure represents a significant effort on the part of a mortgage lender. Not only is it a lot of work, but they also have to go through the process of proving they own the loan. After the scandal of robo-signing, many banks and lenders are having a difficult time proving who owns the loan. In many cases, they are forced to renegotiate the terms of the loan simply to avoid the effort of a foreclosure.
Weighing Bankruptcy versus Foreclosure
If you’ve managed to stay current on your mortgage payments until now but have not been able to keep up with other debts, filing for bankruptcy may make sense. In many cases, you’ll be allowed to keep your home.
If your primary debt problem is your mortgage, you may not be able to avoid foreclosure, but you can potentially avoid declaring bankruptcy. Again, it all depends on the equity in your home, the amount you owe, your income, and more. Not everyone is eligible for bankruptcy protection. A foreclosure defense lawyer can guide you in the right direction.
Timing your Foreclosure Defense
If you’re facing a financial crisis – job loss, illness, injury, divorce, or any other similar personal problem that could end up in either foreclosure or bankruptcy, consulting a foreclosure defense attorney early can make all the difference. The right decision made in time can save you years of restricted credit in the future. Even if you have been turned down for a mortgage modification before, the times have changed, so don’t give up.
With the right legal help, a struggling homeowner can stage a proper foreclosure defense and make the difficult decisions about how to go forward. Contact an experienced team like the Litvin Law Firm for the right legal help.