How does an attorney stall foreclosure?

If you have defaulted on your home mortgage, an experienced attorney may help you stall a possible foreclosure in five ways:

Loan Modification

A loan modification is when your lender modifies your existing mortgage by lowering the interest rate and extending the term of your loan.  Loan modifications also help lower monthly payments to make them more affordable.  To receive a loan modification you must show that your financial hardship is temporary and you have the ability to ultimately repay the loan. 

Forbearance

Forbearance is a short-term agreement where your lender allows you to catch up on your missed payments. Once you have caught up, you return to paying your regular payments. 

Reinstatement

Reinstatement allows you to pay past-due amounts as well as accompanying fees and other costs.

Short Sale

A short sale allows you to sell your home with the lender's approval for less than what you owe on your mortgage balance. The proceeds satisfy your mortgage debt and you will no longer owe anything to your lender.

Deed in Lieu of Foreclosure

A deed in lieu of foreclosure transfers the ownership of your property back to your lender and you walk away owing nothing.   However, not all lenders will accept a deed in lieu of foreclosure.

Other Tactics

Other tactics you may use to fight your foreclosure include: 

• Staying in your home and not paying any mortgage payments while negotiating with your lender. 
• Conducting a mortgage loan review through your attorney who will look for violations by your lender of Real Estate Settlement Procedures Act (RESPA), Equal Credit Opportunity ACT (ECOA), Truth in Lending Act (TILA), and Racketeering and Corrupt Organizations (RICO). Under these laws, your lender is required to provide you with proper disclosures and notice of rescission at the time they make your loan. If the disclosures or notices are inaccurate or insufficient, you may be able to rescind your loan and collect money damages.
• A strategic default is generally used by homeowners who can afford their payments but who walk away from their property because they have no chance to recoup their equity. However, Fannie Mae and Freddie Mac have announced new restrictions against homeowners who do a strategic default. These homeowners will not be able to get a new Fannie Mae-backed mortgage for seven years and Fannie Mae now pursues deficiency judgments against strategic default borrowers if state laws permit.

Research the attorneys in your area to find attorneys who can stall foreclosures.