First and foremost, do not wait to seek help! I cannot stress this enough to anyone who is in foreclosure. Once you are served with the foreclosure papers you have 20 days to answer and once that date has passed you are fighting an uphill battle and may not be able to recover. There are, however, options that may be available to the homeowner up to the date of the actual foreclosure sale but if you wait and do not seek assistance you risk serious financial and legal consequences. A mortgage foreclosure will not go away on its own and you should keep in contact with your mortgage company at all times. Many homeowners simply file a letter with the court stating they are trying to work with the mortgage company or explaining why they fell behind but this alone will not protect their rights. You need to file a motion to dismiss or answer that is legally sufficient and that raises legally recognized defenses. By hiring an attorney, he or she may assist you in raising your defenses through proper legal documents.
Most homeowners simply want to gain valuable to time to make good on their mortgage payments but need professional assistance. There are a variety of options available to the homeowner including
- Repayment Plans
- Loan Modifications
- Forbearance Agreements
- Deeds in Lieu of Foreclosure
We negotiate on behalf of our clients to achieve all of these objectives. In many cases we are able to work with the mortgage company to rewrite the terms of the note and mortgage by negotiating a loan modification at terms that are affordable for the homeowner.
Mr. Tiller, the managing member of the firm, is also a licensed real estate agent and will work with clients of the firm to list their properties with reputable real estate brokers that can assist in achieving a short-sale of the property while every effort is expended by the firm to obtain the mortgage companies approval for the sale upon terms acceptable to our client.
Many of the above options have significant tax consequence for the homeowner and it is critical that they obtain professional tax advice. Many real estate agents and other professionals that have recently jumped into the foreclosure arena are inexperienced in these matters. All too often, the homeowner will later realize that he or she owes substantial taxes because of mistakes made during the process. Never take short-cuts in a foreclosure because there are many pitfalls for the inexperienced.