Defenses to Foreclosure
When looking into buying a home, you should always look for great deals before rushing into making that purchase. Many people have opted to go for foreclosed homes because they are thought to be spacious, in great locations, not to mention that they are affordable.
As much as the foreclosure market is not thriving as it did around 2010, you can still manage to land yourself a good deal if you can maneuver through it now. This is because the foreclosed homes to date are cheaper than typical homes. Note, however, that homeowners have managed to challenge foreclosure actions successfully since the foreclosure crisis, something that rarely happened in the past.
What Is Foreclosure?
This is the process whereby a mortgage investor or lender repossesses unpaid property from the borrower. It can also take place due to the failure of a homeowner to pay their property taxes. As this process occurs, a mortgage lender may choose to put the house back on the market after seizing it to acquire the lost money. The mortgage lender can reclaim the home because a mortgage is a secured loan; thus, your home is collateral.
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Foreclosure and Bankruptcy
Homeowners know when they are about to lose their homes to the mortgage lender, but if you plan to file for bankruptcy, it would be advisable to do so before house foreclosure. This is because it will stop the lenders from continuing with foreclosure as the court will issue an automatic stay. The latter puts creditors at a standstill in the sense that they cannot collect debts thus, seizing foreclosure activities.
How to Raise a Defense to Foreclosure
Easy. You have to take the issue to court, although this depends on whether the state you are in considers foreclosures judicial. Unfortunately, foreclosures are not all accomplished through a civil lawsuit. The non-judicial foreclosures are carried out outside court in some states; this means you are not guaranteed a means to initiate a legal challenge.
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Frequently Asked Questions
Are There Free Housing Counseling Services Available To Homeowners Fighting To Stay In Their Homes?
They are available. All you have to do is go to the U.S. Department of Housing and Urban Development website.
Is Hiring A Foreclosure Attorney Necessary?
It all goes down to your situation. If you plan to keep your home and already have a valid defense, hiring a lawyer should be a priority since they know how to maneuver in this field. They will guide you in doing many things, including submitting the appropriate paperwork or helping you file a lawsuit in time, among many other things. However, if you plan to stay in the home and not pay rent through the foreclosure process, go at it alone.
The above points show things to know about foreclosure defense. If you are experiencing foreclosure at the moment, ensure that you are sure that you need a foreclosure attorney before rushing to hire one. Also, if you have more questions, feel free to reach out to professionals; they would be more than happy to help.