I Am Facing Foreclosure—What Should I Do?
If you’ve fallen behind on your mortgage payments, the threat of foreclosure can be a terrifying thing that keeps you up at night worrying that you may lose the roof over your head. The thought of losing your home—in some cases a cherished family heirloom that has seen generations grow up inside its walls—can be especially devastating.
There are options available to stop a foreclosure and talking to a foreclosure attorney to help you determine if you are able to save your home is a great first step.
Banks May Help If You’re Behind
Right now, many mortgage holders are willing to work with customers who fall behind due to COVID-19 and the devastation it has wrought across the globe. Many states continue to struggle with COVID-related issues and have not fully recovered due to failure to enforce or pass mask mandates, plus a general unwillingness by a skeptical population to get immunized against COVID-19.
Making a call to your finance company before your situation becomes too serious can help you get back on your feet financially without putting your home at risk. If, however, things are too bleak and past that point, your attorney can help you determine which move is right for you, even if it doesn’t mean keeping your house.
Steps to Take Before Foreclosure
If you are looking at foreclosure, there are many steps you can take to prevent it.
- Pay your default. Finding a way to catch up with the money you owe will make your lender much less likely to continue the foreclosure.
- Request a loan modification. Lenders can either refinance your entire mortgage or modify your loan in a way that allows you to catch up with your payments, including temporarily reducing payments.
- Request a short sale. A short sale has to be approved by your lender, and it allows you to sell your home to someone else for less than you owe. Some states will allow your remaining loan amount to be forgiven, while other states require that you pay the amount. Maryland does not require the homeowner to pay the difference, and in some cases, the homeowner might be able to repurchase their home. Only an experienced foreclosure attorney can help you know what the best move is to make.
- File for bankruptcy. Bankruptcy will put your foreclosure on hold automatically, and lenders cannot take any action until bankruptcy proceedings have been resolved. You may, depending on the type of bankruptcy, be able to keep your home.
Are You in Search of a Foreclosure Attorney?
Located in Upper Marlboro, Maryland, Rowena N. Nelson’s offices serve the entire state of Maryland.