Sherman Oaks Foreclosure Protection Lawyers
Just because the real estate market has done well in the last few years does not mean that borrowers are all doing just fine. There are plenty of reasons a homeowner might have to default on their monthly mortgage payments. Job loss, an urgent and costly medical condition, and divorce are just a few examples of how thousands of Americans, every day, miss their mortgage payments and inch closer to foreclosure. If you are facing foreclosure on your home, the Sherman Oaks foreclosure protection lawyers at Wadhwani & Shanfeld may be able to help you stay in your home in the coming months, but retain ownership of it as well.
How We Can Stop Foreclosure
There are a number of ways in which foreclosure can be avoided. A few of them include the following:
- Negotiate a Mortgage Modification—We may be able to negotiate directly with your lender to come up with a payment plan for missed payments. Maybe you have the capital to continue making monthly payments in full, but do not have enough saved up to make a one lump sum payment on missed payments. It is often in a lender’s best interest to work out a deal with the borrower in cases such as this, versus foreclosure.
- File for Chapter 13 Bankruptcy—Chapter 13 bankruptcy provides a structured repayment plan, giving you time to get back on your feet financially. It also allows you to continue living in and owning your home.
- File for Chapter 7 Bankruptcy—Chapter 7 only applies to unsecured loans, such as hospital bills and credit cards. However, by eliminating some of these unsecured loans, some borrowers are able to free up capital to begin paying back their late mortgage payments.
- Short Sale—If you cannot modify or restructure the loan, and all other options have failed, a short sale may be your best option. During a short sale, you sell your home at a loss (less than what you bought it for) and the proceeds go to the bank, which usually foregives part or all of the remaining balance.
Pursuing a loss mitigation is another way to catch up on your mortgage payments and remain the owner of your home.
- Forbearance—The borrower temporarily stops making monthly loan payments in order to catch up and save. After the forbearance period—usually six months to a year—the borrower repays the amount they did not pay over an equal time period (six or 12 months) in addition to their normal monthly loan payments.
- Deferral—If you are unable to repay the full amount during forbearance, a deferral can help you further. With a deferral you pay the unpaid amount at the end of your mortgage term, when you sell the home, or when you refinance.
- Loan Modification—A loan modification simply restructures the loan permanently, usually by reducing the interest rate to make monthly payments affordable.
Call a Sherman Oaks Foreclosure Protection Lawyer Today
No one deserves to be kicked out of their home simply because they were unable to make loan payments. During these hard times, we urge you to call the Sherman Oaks foreclosure protection lawyers at Wadhwani & Shanfeld today at 899-996-9932 to schedule a free consultation.