How To Stop A Foreclosure While Avoiding Bankruptcy
Bankruptcy attorneys will tell you that one way to stop foreclosure is to file for bankruptcy. However, the automatic stay that is afforded by a bankruptcy filing only lasts as long as the bankruptcy lasts. That means that you may only be delaying the inevitable. There are other ways to stop a foreclosure that don’t include filing for bankruptcy and ruining your credit. In this article, the Columbus foreclosure defense attorneys at Kohl & Cook Law Firm, LLC will discuss foreclosure defense and how it can help you prevent mortgage foreclosure.
- Mortgage loan modification – With the aid of a skilled foreclosure defense attorney, you can negotiate for a modification of your mortgage. This can include a lower interest rate, a reduction on the remaining balance of the principal, an extension of the loan repayment period, merging past-due payments into the overall amount of the loan, or a lower monthly payment. Banks are often receptive to mortgage loan modifications because the alternatives are expensive and time-consuming.
- RESPA claims – RESPA prevents mortgage providers from taking several actions during the settlement process or when the title of the home officially transfers to your ownership. It can be used as a defense against foreclosure as well under certain circumstances. RESPA protects mortgage payers from unscrupulous business tactics during settlement. If you are subject to any of these tactics, you can file suit or prevent a foreclosure on your home.
- Foreclosure avoidance – If you are behind on your mortgage payments and the bank is threatening to foreclose, there may be good reasons to avoid foreclosure even if you lose your home. You don’t want to be evicted on the bank’s timeline. You may have other options rather than submitting to foreclosure. These can include a short sale of the home, a deed in lieu of foreclosure, or a cash-for-keys program that avoids foreclosure entirely.
- Federal actions to stop foreclosure – RESPA, TILA, and the UCC are three federal laws that prohibit mortgage lenders from taking unscrupulous actions and require lenders to be honest in their dealings with consumers. You can use these federal laws to help prevent the foreclosure of your home.
- Foreclosure defense – Sometimes a mortgage lender forecloses on a home in error. In these cases, you can fight the foreclosure and retain possession of your home. A foreclosure defense attorney will have the knowledge that you need to fight a wrongful foreclosure.
- HOA foreclosure defense – You can lose your home even if you are current on your monthly payments. A homeowner’s association can trigger a foreclosure action against you. If you are late on your HOA dues or otherwise violate HOA rules, that can trigger a foreclosure of your home. Our attorneys can help you fight an HOA foreclosure and retain ownership of your home.
Talk to a Dayton and Columbus, OH Foreclosure Defense Lawyer Today
Before you file for bankruptcy to save your home, you should contact a foreclosure defense attorney. At Kohl & Cook Law Firm LLC, we have helped several Ohio residents save their homes from foreclosure. Call our office today to learn more.