Behind on Mortgage Payments

Contrary to what many people believe, if you miss one mortgage payment, your lender will not begin foreclosure proceedings.  Most lenders proceed with foreclosure only after a borrower has missed at least three mortgage payments.

Missing Mortgage Payments and Foreclosure Risk

If you've missed one or two mortgage payments, your lender will attempt to contact you by phone and via U.S. mail.  After you've missed at least three payments, most lenders will declare the loan in default.  Once you receive a Notice of Default, you must bring your mortgage payments current or negotiate some other sort of workout with your lender in order to avoid foreclosure. Read more on Foreclosure Timelines

If you fail to respond to the Notice of Default, the lender will accelerate the loan and begin foreclosure proceedings.  When a loan is accelerated, the lender is demanding that the loan be paid in full by a specific date.  Even if you've received a Notice of Foreclosure, you can still avoid foreclosure.

Avoiding Foreclosures from Happening

Because the foreclosure rate has skyrocketed over the past few years, foreclosure rescue companies have cropped up all over the country.  Foreclosure rescue services include assisting borrowers in modifying home loans and negotiating short sales, refinances, forbearance agreements, and deeds in lieu of foreclosure.     

If you are considering hiring a foreclosure rescue company, be aware of the foreclosure scams.  Make sure that the company you hire is legitimate and has a proven track record.  If you get involved with a fraudster, you may pay out a lot of money and still end up losing your home.  So be careful.

Many real estate attorneys offer foreclosure rescue services and work with borrowers who want to challenge the foreclosure on legal grounds.  Attorneys have been successful in assisting borrowers whose previous attempts at lender negotiation have proven fruitless.  Depending on your circumstances, there are a number of defenses your attorney may raise to a foreclosure action including:

• Unconscionability;
• RESPA and TILA Violations;
• Servicing Errors;
• Usury and Consumer Protection Violations;
• Failure to follow state laws governing foreclosure procedures;
• Breach of Contract and Fraud;
• Predatory Lending

Getting Legal Help

The right attorney will be well versed in all aspects of lender negotiations including modifying home loans, short sales, and forbearance agreements.  A qualified attorney can advise you on your best options to avoid foreclosure.