When Your Home Is Heading in The Direction of Foreclosure
March 21, 2018
At Gomez & Simone, we want to help you in your court case when you are attempting to stop your home from going into foreclosure. We offer you the best defense so that you can make up for your payments and move forward knowing that your home is safe. There are many reasons for a pending foreclosure because let’s face it, we’ve all fallen behind on payments in our lives. But what happens when you face extenuating circumstances and now you aren’t able to make timely mortgage payments as expected? Here are some of the common reasons why this occurs:
Loss of a job
Sudden medical emergency
Death in the family
Divorce between partners
Unexpected home maintenance expense
If you have fallen behind on payments, you will receive a formal notice known as a Notice of Default. You want to be able to prevent the Notice of Default, which is a notice that is delivered to the homeowner many days after a missed payment. In some states, this can range anywhere from 60-90 days. When the lender delivers this notice, the person has the right to make up any back payments so that the loan can be reinstated. Many people find themselves in a difficult situation when this occurs and may wonder how they can act to protect their home. Here are some options to work toward keeping your home:
Makeup Payments: You may have a certain amount of time before a lender files a legal action against you. This could include a type of repayment plan if you promise to pay within a certain amount of time that they give you. This plan is called “forbearance” and happens quite often in these cases.
Forgiving: Sometimes, a payment or two can be forgiven. This means that the lender will forgive you for your missed payments and give you debt forgiveness, even though this is rare. However, you must promise that you make all other payments over time.
Spread Out Payments: If you pay $1,000 a month, your lender may agree to let you pay back the missed payment by adding it to future payments. For instance, they may agree to let you pay $1,200 until it is all paid off.
Change Loan Terms: Other times, you may need to change the terms of your loan altogether. They may choose to freeze your interest rate before it increases or changes it to a rate that you can more easily manage.
Back Payments: If you have a loan balance, the lender may tell you that you can pay back payments on top of it. This is called a refinance, and are sometimes seen in these cases.
You want to do what it takes to stop the home you love from going into foreclosure. We want to help you negotiate a deal so that you don’t have to resort to drastic measures like selling your home. Perhaps your home means a lot to you, so take a look at your options and give us a call today for more information on how we can help you. Contact us.