The prospect of losing your home to foreclosure is something that nobody should have to go through alone. There are mechanism available to delay, work through, and avoid foreclosure altogether in order to keep your home. Some of these options include:
• Bankruptcy
• Foreclosure mediation
• Loan modification
If you file for Chapter 7 or Chapter 13 bankruptcy, it may temporarily stop the bank from foreclosing on your home, giving you time to pursue the options of:
• Participating in a repayment plan to get current on your existing mortgage
• Selling your home pre-foreclosure so you can keep any equity you've built in your home
• Arranging for refinancing
• Allowing the bank to foreclose on your home
Foreclosure mediation
It may be possible to contact your lender's debt collection department and to inquire about alternative financing or restructuring optons:
A. Forbearance
A forbearance agreement will typically allow you to do one of two things: You can negotiate a payment plan to pay back missed mortgage payments, or you can ask the bank to add missed payments to the back end of your mortgage and to re-amortize your mortgage payments. In this situation, the amount of your mortgage payment will change very little.
B. Short sale of your home
If the bank agrees, you may be able to sell your home for less than the amount you owe.
C. Reverse mortgage
If you have equity in your home and you are elderly, you may be able to obtain a reverse mortgage.
Loan Modification
Countless programs now exist for homeowners that have mortgage payments that make it impossible to pay their current mortgage. The bank or lender, may modify the loan with the help of a loan modification specialist and one of our loan modification attorneys, and mortgage payments may be dropped in half, interest rates can be cut, and principal can be reduced from the overall loan amount.
Conatact an experienced Boston foreclosure lawyer today at 617-875-4552