The past decade has been very difficult for Americans. The average American has either experienced or knows somebody who has experienced job loss. The downturn in the economy resulted in countless people losing their jobs and their home.
Studies have shown that the poor economic conditions have increased the rate of short sales, bankruptcy and deeds in lieu. In fact, more people are now aware of chapter 13 bankruptcy than ever before. Familiarity with these issues does not guarantee that the legal actions that pertain to them will be completed successfully. For this to happen, homeowners need to hire an attorney.
Nobody wants to foreclose or their home or file for bankruptcy. However, these actions do not carry the social stigma that they once did. Americans are now seeing them for what they are – a method of gaining a fresh start financially.
A good foreclosure attorney will help their clients with their financial and legal issues. The process in Florida can be judicial or non-judicial. It is important for homeowners to be aware that attorneys can help them at any stage of the foreclosure. This includes pre-foreclosure and the actual litigation process.
Hiring an attorney is a urgent matter. Homeowners who have been served a notice of foreclosure only have 20 days to respond. Having a lawyer present at the beginning of the process will increase the odds of preventing foreclosure.
Homeowners need to be aware that there are alternatives to foreclosures. Some examples of these are renting the property out, loan modification, refinancing and bankruptcy. Lawyers will discuss these options with their client during the initial consultation.
Foreclosing on a property is bad for both the homeowner and the bank. Homeowners will no longer be able to live on their property. They will also lose whatever equity they have on the home.
Banks dislike foreclosures as they are expensive and unprofitable. When a bank sells a foreclosed home, they need to sell it as quickly as possible. As banks prioritize fast sales over profit, they often sell houses for much less than they are worth.
Due to the issues outline above, banks are just as eager to avoid foreclosure as homeowners. As a result, they may be willing to refinance or modify the home loan. Lawyers can speak to lenders on their clients behalf to see whether or not this is an option.
There are several other ways attorneys can deal with foreclosures in the courtroom. Some of these are listed below.
– The terms of the home loan are considered to be “unconscionable”. For example, the borrower accepted unreasonable terms or did not understand the contract due to language barriers.
– The borrower is a service member.
– The lender did not follow proper state procedures.
– The lender made a serious mistake.
Anyone who is facing a threat of foreclosure should contact an attorney. The attorney will determine whether they can find an alternative to foreclosure or whether the client has to go to court.
