The dream of home ownership has turned into a nightmare for some Americans. Job loss and medical bills are just two reasons homeowners find themselves behind the eight ball to pay their bills. Mortgages are a particular point of stress. No one wants to lose the roof over their head. By taking action now, you can prevent foreclosure.
COVID-19 Forbearance Is Only Temporary
The U.S. and the world have been reeling from public health and economic crises caused by COVID-19. Quarantine, business closures, lack of childcare, and other pandemic-related factors caused many Americans to lose work through no fault of their own. To help those affected, Congress passed the CARES Act last year. The Act comprises initiatives such as mortgage forbearance and a moratorium on evictions and foreclosures on federally backed mortgages. Outside of that legislation, some banks also approved some forbearance for home loans.
The COVID-19 pandemic temporarily put everything on hold, but that is no longer the case. These temporary protections will not last forever, and banks prioritize their own interests. Act now to safeguard against losing your home.
Restructure Your Home Loan
You may qualify for a loan modification. A loan modification is when the mortgage holder and the lending institution or bank reach a mutual agreement where the lender agrees to adjust the terms of a mortgage or home loan. By modifying the loan, the homeowner has the opportunity to afford their monthly mortgage payments and avoid foreclosure.
Loan modification may include:
- Monthly payments may be reduced.
- Mortgage interest rate may be lowered.
- Late fees may be removed.
- Mortgage repayment time may be adjusted.
Most people seek a loan modification when they are at risk of losing their home due to foreclosure. By modifying the loan terms, homeowners may be better able to make their monthly payments because the payments are lowered to a more affordable rate. To increase the chances of reaching a loan modification agreement with their bank, homeowners are encouraged to seek legal help from a professional loan modification attorney.
Watch Out for Foreclosure Scams
Scammers may offer to "help" you make your mortgage payments. They are just trying to take your money. Rent-to-buy and other mortgage-fraud schemes are targeting vulnerable homeowners. Don’t sign any documents without having them reviewed by a lawyer. Use a reputable attorney to protect against these scams.
A few signs you are being scammed include:
- You are guaranteed results in 30 days.
- You are offered a pre-approval with a special deal.
- You are offered an automatic government-approved plan.
- You are asked for credit card information over the phone in the first conversation.
Act Now to Stop Foreclosure
Time is of the essence. The sooner you contact an attorney to get your debt restructured, the better your chances of keeping your home. 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.
Our firm is here to help you throughout the entire mortgage modification process, starting with a review of your current loan documents to size up where you stand, your current balance and payment history, and what your options may be.
To reach the foreclosure defense legal team at Fine Law Offices, please call (800) 939-3819 or contact us online. Your initial consultation is free.