In many cases, clients do not properly understand why they may need a foreclosure attorney. There are several areas in which the individual may not understand his or her rights, which is exactly what an attorney can help to protect you from.
First, you must contact your lender as soon as you realize you have or are going to miss a payment. Lenders can discuss your options with you that will help save you from getting to the stage of foreclosure. Please be honest and upfront about your financial situation, to maintain the trust between you and your lender.
Secondly, it is very important to know your rights. Learn about the foreclosure legalities within your state. By doing this, you are educating yourself to know what leverage you have against that lender who may be trying to take advantage of you and your situation. It is also important to review all loan and mortgage documents that you have. This may tell you what action your lender may take against you next. Seeking the advice of a foreclosure attorney will also aid in your efforts to communicate and establish a rapport with your lender.
Florida Statute 702 can help to teach you about Florida Laws and Foreclosures. This will help you to know your rights involving the legal notices and steps; as well as a definition of what some of these things mean, the industry jargon and legal terms that may be difficult to understand. Important terms to recognize and understand are: reinstatement, forbearance, repayment plan, and loan modification.
Reinstatement may be a possible option given by your lender. Reinstatement occurs after you have already defaulted on your mortgage payment. If your lender agrees to a reinstatement, they are allowing you to re-enter your mortgage agreement after you have paid the outstanding payments and fees assessed by your lender. This is typically done as a lump sum with a specified due date.
Forbearance is essentially a way lenders reach their hand out within the bounds of the contract to help the borrower get on his/her feet. Your lender may lower your payment or temporarily suspend it until you are able to begin making payments again. A forbearance is usually combined with a reinstatement or a repayment plan detailing how and when you will pay off any past due payments. A repayment plan may be set up to help to pay off the past due balance while making regular, current payments. This option adds the total amount of the past due balance to upcoming payments.
Loan modifications are made when you, or the lender, make a permanent change in the original mortgage agreement. Modifications may include lowering the interest rate or the increasing the length of the loan.
If you are worried about foreclosure, try re-examining your finances. See if there are any cuts you can make in expenses such as: cable, credit cards, daily lattes, or any other any extras that can be put on the back burner while you pay your mortgage. This may also show your lender your seriousness about working to save your home at all costs.
If these things do not work for you, or you find your lender unwilling to work with you, a foreclosure lawyer maybe necessary to help you to ensure you and your family are not taken advantage of through this situation. Merritt Law Office has over 20 years of combined experience and has the compassion and understanding to help you through this difficult time.