So, on March 21, President Trump urged the nation to “stay home and save lives” in a bid to contain the COVID-19 pandemic, a situation that has prompted 3.3 million initial claims for unemployment benefit [1].
Millions of people have been laid off in the hospitality and food services sectors. Workers have been furloughed in the entertainment, social care, arts, recreation, transportation, and manufacturing industries. Resultantly, various temporary financial measures to mitigate a surge in mass unemployment and homelessness have been introduced.
After New York Governor Cuomo announced a 90-day suspension of mortgage payments so that New Yorkers can self-isolate to alleviate the extent of the crisis, other states have followed suit. Remember, though, this is only temporary:
Foreclosure proceedings are scheduled to pick up again, once the moratorium has ended [2].
In March, Mark Calabria of the Federal Housing Finance Agency urged lenders to show leniency to anyone with a Fannie Mae or Freddie Mac home loan. He urged leaders not to report delinquencies to credit agencies and to suspend foreclosures and other legal proceedings [3].
On March 25, the Federal Housing Financial Agency relaxed the rules for homeowners whose mortgages are backed by government-subsidized enterprises. This encompasses a large chunk of all homeowners.
- 46% of mortgages issued in 2018 are backed by Fanny Mac and Freddie Mae
- 29% of mortgages issued are backed by Veterans Affairs [4].
The deepening global health and economic crisis have plunged millions of American homeowners into joblessness with the specter of foreclosure looming.
Interestingly, in the same week, markets have rallied, maybe due to the approved $2 trillion stimulus package [5].
What Steps Can You Take?
This is a difficult time for everyone. The prospect of losing your home is frightening, but even if you feel resigned to the possibility of losing your home, you may not have explored all options available to you.
If you take action now, it might be possible to arrange some loss-mitigation options to buy you more time to get current and avoid foreclosure. If you’re already 3 months delinquent on your mortgage, it’s advisable to hire a foreclosure lawyer so your case is handled expediently. Banks are currently handling high volumes of loss mitigation applications, so a lawyer can cut through the red tape and get your case moving.
Hiring a Foreclosure Lawyer
Hiring a foreclosure attorney can drastically improve your chances of staying in your home.
You may have already been refused a loan modification from your bank and been served a notice of foreclosure.
Many people try to handle affairs with their mortgage servicer without assistance. Some lenders use underhand tactics to force people out of their homes. You may not realize it, but your lender could just be using intimidation tactics to make you think you have no rights when in fact you do.
A foreclosure lawyer can advise you on your rights. Even if you can’t afford to hire them for the entire process, even an initial consultation can sometimes be all you need to shed some light on your situation.
Lawyers trained in foreclosure law know the strategies that banks use to hurry people out of their homes. They also know the steps that a bank should follow when they file for a foreclosure notice. If they’ve stepped out of line at any stage of the process, you have a promising case to get the notice canceled.
When you meet with a lawyer, give them copies of your promissory note, mortgage agreement, bank statements, and all related correspondence. If there’s anything that could indicate foul play on the bank’s part, they will help you to fight back. The power in holding this knowledge is worth every cent.
Foreclosure lawyers are specially trained in negotiation strategies and develop long-term relationships with banks and mortgage servicers. Lenders are much quicker to respond to lawyers than civilians and they can sometimes get a deficiency judgment removed from your debt.
Act Now To Avoid Any Regrets
It can’t be stressed emphatically enough that the sooner you get in touch with a foreclosure lawyer, the sooner they can get the ball rolling.
Remember also, that due to the recently slashed interest rates, mortgage lenders are overwhelmed with applications for loan modifications. If you’re over 3 months delinquent, it might make your case a bit harder. However, don’t rule it out completely. You must take action straight away to strengthen your case.
Another thing to consider is that once your case is in the hands of a foreclosure attorney, the debt collectors have to liaise with them, not you, so you avoid the hassle of phone calls and letters.
Even if you were previously unsuccessful with another foreclosure attorney, it doesn’t necessarily mean your fate is sealed. It’s always worth checking with a foreclosure lawyer with a high success rate as they might have a different take on the situation.
Remember, a lawyer is an expert in handling these matters and can have them resolved speedily. Even if you can only afford a lawyer for part of the process, the legal advice you receive will be well worthwhile. The lawyer can highlight your rights to you and arm you with the knowledge and strategy to fight the foreclosure.
Alternatively, if you allow a lawyer to handle everything, you’ll avoid a lot of pain and anguish while maximizing your chances of staying in your home. Again, act now and don’t delay!
To reach the foreclosure defense legal team at Fine Law Offices, please call (800) 939-3819
