Opportunities for Consumers to Achieve Foreclosure Prevention

by | Dec 28, 2016 | Foreclosure

Consumers facing foreclosure need to evaluate beneficial tactics to avoid it, and an attorney could provide them with invaluable strategies to keep their home. A lawyer presents these opportunities for foreclosure prevention based on the consumer’s needs.

How Loan Modification Could Prevent Foreclosure
An attorney could help prevent foreclosure through a mortgage loan modification. First, they review the terms to determine if they are fair to the consumer; next, they establish that the lender gave them a product they could afford easily. If it isn’t affordable, the attorney identifies changes that could prevent foreclosure, which could include refinancing the loan with more favourable terms.

The attorney determines if a lower interest rate was available to the consumer: if they were assigned a higher than average rate, the attorney pushes to gain a fair value, which could reduce the value of the mortgage. These options could achieve foreclosure prevention for the consumer.

Filing for Chapter 13
Chapter 13 provides extended protection against foreclosure. Bankruptcy provides consumers with an automatic stay, which indicates that the lender cannot proceed with the foreclosure process or any legal action to seize the primary home of the consumer. Since a chapter 13 case lasts for up to five years, the consumer maintains this level of foreclosure prevention for the full duration.

They also enter into a repayment plan that allows them to bring the account to current, therefore preventing foreclosure when the case is discharged. All late charges and fees are applied initially; however, the consumer doesn’t ensure additional fees during bankruptcy.

Can Chapter 7 Help Prevent Foreclosure?
With chapter 7, the consumer achieves an automatic stay for up to six months, which gives them time to settle outstanding balances owed on the property. However, if the consumer chooses to sell the property through liquidation, they could settle the debt completely.

Consumers have several viable opportunities when foreclosure begins and an attorney could help them with these tasks: there is bankruptcy and loan modification to prevent immediate seizure of their home. They could also sell the property through liquidation or a quick sale. Consumers who need assistance should visit website today.

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