If you find yourself failing to pay your mortgage a couple of times, expect your lender to send you a notice of foreclosure soon and when that comes, your next steps will determine how your situation would end. It can result to you saving your home, losing it to foreclosure, or worse, losing it to a third party and still be left with a huge debt to pay. To get the best outcome, here are a few do’s and don’ts as advised by a Long Island foreclosure lawyer.
Talk to Your Lender – Most people avoid this stressful encounter because they do not want to be told to pay up straight in their faces or because they do not know how to bargain with their lenders. The thing is, if you want to avoid the ordeal of going through a lengthy foreclosure, the best solution is to still ask your lender to give you more time to pay up your back fees. If your lender does not agree on that, at least you can ask for a loan modification so that you only have to pay for a lesser mortgage even for a temporary period, just to keep you afloat as you struggle with your own financial problems. Many lenders will agree to this more than you realize.
Hire a Lawyer – A Long Island foreclosure lawyer can help you in many ways, such as in doing the negotiation with the lender for you and then processing the loan modification to keep your interest in priority. If the foreclosure does proceed to the court, then he can find ways to have it dismissed or fight it for you so that you can eventually keep your home.
Be Informed of Your Options – Your Long Island foreclosure lawyer can spell out the many options available to you. It is important that you know all of these so that you can decide wisely in relation to how you see your finances would become in a year or two.
Do Nothing – Ignoring the notice of foreclosure does not mean that it will remain stagnant. It actually moves forward and you only have about thirty days to file for a motion for dismissal. Doing nothing will just worsen your situation. It is best that you prepare accordingly depending on whether you want to keep your home or not.
Sign Over Property to a New Owner – There are plenty of scam companies that prey on vulnerable homeowners that are facing foreclosures. They pretend to be the lifeline that these distressed owners are waiting for, offering to pay off the future mortgage until such time that the owner can pay for it on his own. In return, they want the property to be signed over to them. These are merely lies. You will eventually find yourself losing your property and still be liable to pay off your housing loan from your lender. Avoid being a victim of these malicious fly-by-night companies. If you do want to find someone to pawn your property to, make it someone that you personally know and trust.
Add Another Loan – For some, getting a new loan to pay off the first loan seem to be a logical solution. It really depends on your financial status. If you do not have a good job at the moment and has little chance of finding a new one soon, then avoid this option or you will just be buried in debt. That will not only increase your emotional distress but affect your credit score as well.
These few tips from a Long Island foreclosure lawyer can define the outcome of your foreclosure case. Definitely avoid those steps that will just aggravate your situation and do not be fooled by offers of financial salvation from people who are unknown to you. Listen to your lawyer and be brave to face your lender to come up with a good solution.