Foreclosure Defense Strategies

Foreclosure Defense Strategies

Losing a home is a stressful event, and it has led to divorce, families separating, and a plethora of psychological problems. But a foreclosure does not happen overnight. An article on the website of Cedar Rapids-based law firm Hong Law, PLC, reminds homeowners that there are legal ways to avoid a foreclosure given the proper advice.

It is no secret that home foreclosures are widespread in the US, although it is currently on a downward trend. This could partly be due to the aggressive foreclosure defense strategies that homeowners are using to protect the assets that they have accumulated through hard work.

One of the most commonly utilized foreclosure defense strategies is bankruptcy. There are several types of bankruptcy that could apply to a specific individual facing foreclosure. This includes Chapter 13 bankruptcy, which is essentially a restructuring program, and Chapter 7 bankruptcy, which is largely debt forgiveness. A foreclosure defense lawyer can help determine which type of bankruptcy would best suit the circumstances of the debtor, but the priority is to avoid foreclosure of the home.

Another foreclosure defense strategy is mortgage modification. There are federal and state programs which are designed to help distressed homeowners avoid losing their home by motivating lenders to agree to change the terms of the mortgage that will give homeowners a chance to recover.

It may also happen that certain lenders may not have been dealing fairly with their clients to the extent that they are violating some aspect of the Truth in Lending Act. It would be wise to have a foreclosure defense lawyer check out the mortgage agreement for any evidence of this.

The worst thing a homeowner who is facing foreclosure can do is to do nothing until it is too late. There is no profit in wallowing in self-pity; what is needed is positive action. Get a professional to assess your situation and see what you can do to stop foreclosure in its tracks.

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