As a homeowner faced with the prospect of foreclosure, the last thing on your mind would be to study. However, expert Long Island foreclosure defense lawyers advise against such mindset.
In their opinion, every homeowner should make it a point to educate themselves about the different techniques and strategies applicable to their case.
With this knowledge a homeowner can easily make sense of the situation that in turn will help ease the anxiety brought about by the situation. Moreover, a homeowner will have a better understanding of the necessary defense tactics to be suggested by their foreclosure defense lawyer.
In some cases, certain techniques may be carried out to help homeowners evade foreclosure. But at the same time, it would require them to move out of their home for the time being.
A Long Island foreclosure defense lawyer may recommend that the house be put up for a short sale. In this manner, the house would be sold at a rate that is below the outstanding balance on the mortgage.
Another option is to set up a deed in lieu of foreclosure. This technique releases a homeowner from his or her obligation to continue paying the mortgage as the title of the home is turned over to the mortgage agent.
A third option for homeowners is to file for Chapter 7 bankruptcy. This would require a homeowner to sell certain assets of theirs in order to gain funds that can be used to payback their creditors. Consequently, this would help release them from their debts.
If qualified, homeowners facing foreclosure may have the chance to stay in their homes even while the proceedings are ongoing. This technique is particularly applicable to homeowners whose financial situations have improved to a certain extent since the foreclosure proceedings started.
In this case, a Long Island foreclosure defense lawyer may negotiate for a mortgage forbearance on behalf of their client. This would entail the suspension of foreclosure proceedings to allow a homeowner to get up-to-date with their mortgage payments.
Another possibility is to set up a repayment plan. In this fashion, outstanding mortgage payments will be spread throughout the remainder of the loan. Unfortunately, this would entail an increase in monthly fees.
As a last resort, homeowners may file for Chapter 13 bankruptcy if their Long Island foreclosure defense lawyer sees fit to do so. This procedure would enable a homeowner to pay their creditors after their debts are restructured.
Another Long Island foreclosure defense strategy homeowners may consider is a loan modification. This would require skillful negotiations with the mortgage lender who would agree to the adjustment of the original contract terms such as the interest rate, principal reduction, and repayment time. Given the more affordable payment scheme, a steadfast homeowner may be able to evade foreclosure.
An additional strategy that homeowners may want to look into would be to reinstate their mortgage. This involves borrowing cash for the purpose of paying outstanding fees. If possible, the option to borrow money from family or friends could also be a good way to catch up on mortgage payments.
Otherwise, selling the home may be another alternative solution. In this aspect, a homeowner would have several options. First, to sell the home in order to use the equity gained and buy something more affordable.
Second, sell the home to a financier under a lease-option contract. This will enable the homeowner to buy back the property once he or she has enough funds to do so.
Third, sell the home to a financier and then pay rent to be able to stay in the home for a certain period of time. This would be ideal for families with school age kids. In this manner, it would not be necessary to uproot the family until after the kids finish their education.