Mistakes Homeowners Make When Facing Foreclosure And How To Avoid Them
There are few things in life more stressful than facing foreclosure on your home. Navigating a path through this difficult time requires the aid of foreclosure defense attorneys. In this article, the Columbus, OH foreclosure defense lawyers at Kohl & Cook Law Firm, LLC will discuss common mistakes homeowners make when facing foreclosure and how to avoid them.
Ignoring foreclosure notices
No one likes bad news and it’s remarkably easy to fail to respond to notices the bank sends you concerning your mortgage loan. In these cases, homeowners slowly fall behind on their mortgage payments and eventually, past-due notices become foreclosure notices. At this point, the homeowner may not even be opening their mail. In other cases, homeowners struggle to determine their next move. As a homeowner, you have options. Your next move should be to call a Columbus, OH foreclosure defense attorney.
Mismanaging home equity loans
If you’re at the point where you’re facing foreclosure, chances are good you’ve either already received or are considering taking out a home equity loan. Mismanagement of home equity loans is among the biggest mistakes a homeowner can make when facing foreclosure. You should never use a HELOC to pay off unsecured debt like credit cards. This could make it more difficult to file for bankruptcy if you need to. Those with both a first and second mortgage on their homes should prioritize paying off the primary home mortgage first. Some homeowners try to split payments between the two. This is a mistake.
Using retirement savings to keep your home
Digging into your retirement savings to avoid foreclosure is generally considered a mistake. Retirement savings are usually protected from the process of bankruptcy. If you ever need to file for bankruptcy, your retirement savings will be protected as long as they’re in a retirement savings account. If you drain your retirement savings to keep your home, you still risk losing your home, and now your retirement savings to boot.
Trying to keep a home you can’t afford
In some cases, there’s nothing you can do and walking away from the mortgage is the smartest move you can make. It can be horribly difficult to do so, but the end goal of foreclosure defense is to return you to good standing with your mortgage provider and then continue making regular payments on your mortgage. If your income level changes, continuing to pay on a mortgage you can’t afford may not be practical.
Representing yourself
Foreclosure defense attorneys help you review your finances, negotiate with your creditors, and forge a path forward that both saves your home and leads to long-term financial stability. Without a lawyer, you won’t know if your actions are hurting or helping your case. Skilled representation will allow you to find the best path forward.
Talk to a Columbus, OH Foreclosure Defense Lawyer Today
Kohl & Cook Law Firm, LLC represents the interests of Columbus residents who want to save their homes from foreclosure. Call our Columbus foreclosure defense lawyers today to schedule an appointment, and we can begin reviewing your case right away.
