Stop Foreclosure

Losing your house through foreclosure can be emotionally and financially devastating. Many unforeseen factors can lead to the threat of foreclosure. People may face financial problems and fall behind on mortgage payments because of divorce, unexpected loss of job, injury, disability, or other circumstances beyond their control. If you’re facing foreclosure, it is crucial to consult a competent Vancouver bankruptcy attorney to help you determine the different ways to avoid or stop foreclosure.

At Robert Russell Law Office, we have an extensive understanding of the state and federal laws on foreclosure. We are committed to providing legal assistance to clients facing foreclosure and bankruptcy issues.  Our legal team will help you create a plan to solve your debt problems and save your home from foreclosure.

Call us now and schedule an initial consultation with our law office.

Foreclosure is the legal process by which a lender attempts to recover the amount you owe on a defaulted loan by taking ownership of and selling your mortgaged property. When you fall behind on your mortgage payments, your lender may seize the property that you used as collateral and sell it to recover the remaining balance.

The foreclosure process varies from state to state, but most lenders are willing to negotiate with you to help you catch up on monthly payments and avoid foreclosure. A credible Vancouver home foreclosure attorney can help you know and understand the process of foreclosure. Depending on your state, the foreclosure process can be judicial or non-judicial.

In a judicial foreclosure, the lender files a lawsuit to initiate a foreclosure. The borrower goes to court to fight the lawsuit and if they lose, the house will go into foreclosure and be sold at auction. On the other hand, non-judicial foreclosures rely on power-of-sale clauses in the mortgage or deeds of trust to recoup the balance owed if the borrowers stop making payments. There is no court hearing, and the process generally is faster than under a judicial foreclosure.

While it may seem hopeless when you’ve fallen behind on mortgage payments, there are different ways to stop foreclosure. Your options depend on how far you’re behind and your financial situation. A reliable home foreclosure attorney in Vancouver WA can help you determine your legal options to save your home or property from foreclosure.

Enter Into a Repayment Plan

With a repayment plan, you arrange to make up your missed payments over time and stay current on your ongoing payments. Your regular monthly mortgage payment increases for a short period to make up for the mortgage payments you missed. Depending on the overdue amount and your record of past payments, your lender may be willing to let you spread out the missed payments over a certain period. A repayment plan must be longer than one month, but no more than 12 months. In this option, your income must be enough to cover both current and overdue amounts.

Reinstate Your Loan

Mortgage reinstatement can be one of your options to avoid foreclosure. You can catch up on your payments and cover any late fees to restore the mortgage by paying the total amount past due. State law usually gives homeowners a specific amount of time to reinstate. You might be able to reinstate it up until the sale.

If you are considering reinstatement as an option for avoiding foreclosure, it is important to know and understand your rights and the deadlines that you will need to meet. Once you have met the requirements for reinstatement, the foreclosure case will be dismissed.

Enter Into a Forbearance Agreement

A mortgage forbearance agreement allows borrowers with temporary financial struggles to put a hold on their monthly mortgage payments for a certain period. During the forbearance period, you can use this time to reorganize your finances, get back on track, and pay off your accrued bills.

With this option, both the lender and the homeowner may agree to pause payments entirely during this time, or they may agree on a reduced payment. However, the forbearance agreement will require you to make full payments as provided under the loan’s original terms once the forbearance period ends. You may consider this option if you are currently unable to make your monthly mortgage payments but think you should be able to resume making payments soon.

Modify Your Loan

If you cannot make your monthly mortgage payment, you can try modifying the terms of your loan. Loan modification involves a change in terms of your current loan to lower the monthly payment. It can help you extend the length of your payment, reduce interest rates, or reduce monthly payments depending on your current financial situation. In addition, your loan servicer can add any amount that was past due to your loan balance. Depending on your circumstances, you can also qualify for a proprietary (in-house) loan modification or Freddie Mac or Fannie Mae Flex Modification.

Refinance Your Loan

Refinancing your mortgage allows you to pay off your existing mortgage and take out a new mortgage on new terms. All states give you the right to “redeem” your mortgage by refinancing up until the foreclosure sale. You may consider refinancing if you are current on your mortgage payments but would benefit from a reduced payment with a lower interest rate in the future. In most cases, refinancing is available only if you have equity in your home, and have an acceptable credit score.

File for Bankruptcy

If a foreclosure sale is scheduled for the next day, the best way to stop the sale immediately is by filing for bankruptcy. However, this may not be the most effective way to stop foreclosure. A knowledgeable Vancouver bankruptcy lawyer can help you determine whether bankruptcy will help you settle your debt and save your home.

In reality, filing for Chapter 7 bankruptcy can merely delay the foreclosure process and possibly buy you some time to catch up on your payments. It may not be a good idea to file for bankruptcy just to delay a foreclosure. But if you have many other outstanding debts that you can discharge through the process, filing for bankruptcy may be beneficial.

On the other hand, Chapter 13 bankruptcy may let you catch up on past-due payments through a repayment plan and keep your home. However, before choosing this option, you must consider the severe consequences bankruptcy has on finances and creditworthiness, as it may be difficult to recover from.

Sign a Deed in Lieu of Foreclosure

Sometimes, to avoid foreclosure, a lender will accept a deed in lieu of foreclosure. With this deed, you willingly transfer your home ownership to your lender and, in exchange, are released from your mortgage obligation. When you hand over the deed, the lender releases its lien on the property. This allows the lender to recoup some losses without forcing you into foreclosure.

This plan allows you to avoid an official foreclosure proceeding and make a graceful exit from your home. You may consider a deed-in-lieu of foreclosure if you have exhausted all other options.

Arrange a Short Sale

In a short sale, the lender agrees to let the homeowner sell the home to a new owner for less than is owed on the mortgage loan. In some cases, you’ll be required to pay the difference between what the sale brought and what you still owe. If the lender forgives the deficiency, you might face tax consequences. You may consider a short sale if you can no longer afford your mortgage payment and have exhausted all options to remain in your home.

Call Our Experienced Vancouver Home Foreclosure Attorney Now!

Foreclosure is a lengthy and complicated legal process. If you have fallen behind on your monthly payments and a mortgage company is threatening foreclosure on your home, you may feel like you don’t have many options. However, no matter where you stand in your current ability to make your monthly mortgage payments, there are various options available to help you avoid or stop foreclosure.

When facing foreclosure, it is highly recommended to consult our skilled Vancouver home foreclosure attorneys at Robert Russell Law Office. We can navigate these complex areas of the law and develop the best solutions for your case. Our lawyers will help you know your options to avoid or stop foreclosure. Contact our bankruptcy law firm to help you learn about the foreclosure laws in your state and your legal rights during a foreclosure.