Foreclosure mitigation is a way for distressed homeowners facing foreclosure to save their homes form going to foreclosure through various programs. There are millions of homeowners who are taking part in foreclosure mitigation programs such as the Home Affordable Refinance Program and the Home Affordable Modification Program. Homeowners are achieving success through these programs and have been able to stay in their homes.
To find out more about these programs, homeowners should seek foreclosure mitigation counseling. Foreclosure mitigation counseling is available to all homeowners who are in default or about to default on their home mortgages through certified HUD counselors, other non-profit organizations and privately.
Consequences of Foreclosure Mitigation Not Working
The legal ramifications of defaulting on your home mortgage can result in foreclosure or even in extreme cases bankruptcy. Both ruin your credit. Even if you negotiate a Chapter 13 Bankruptcy repayment plan with your lender, if you default at any time, you can lose your home to foreclosure. Although some states allow the homeowner to redeem their home within a statutory redemption period, few are able to do so as a result of various factors such as economic conditions and economic hardships.
Keep in mind if you decide to sell your home and obtain your lender’s approval on a short sale, you could still be liable for the difference between the sale proceeds and the balance you owe your lender if your lender obtains a deficiency judgment against you after the sale. In order to avoid a deficiency judgment, you should negotiate with your lender that the sale proceeds satisfies the loan balance so that you can walk away owing nothing to your lender.
The Alternative: Help from a Foreclosure Attorney
The best thing to do is to communicate with your lender early on, seek foreclosure mitigation counseling and consult with a real estate foreclosure defense attorney to find out your legal options. Such options that a qualified Foreclosure Attorney mad advise you on include a mortgage modification, refinancing, short sale, deed in lieu of foreclosure, forbearance and other options.
If your lender has already instituted foreclosure proceedings against you, the attorney is the only person who can legally defend you. Once you hire an attorney, your creditors must stop calling and harassing you. Legally, they have to speak to your attorney.
