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Strategies for Avoiding Foreclosure: Legal Options and Resources

Strategies for Avoiding Foreclosure: Legal Options and Resources

Foreclosure is intimidating and often leads to significant distress. However, there are a variety of legal options, resources, and strategies for avoiding foreclosure. Exploring all your possible options for preventing and stopping foreclosure may provide greater reassurance for a way out. Reach out to a Chattanooga bankruptcy lawyer to start exploring your legal options today.

What Leads to Foreclosure

Understanding what leads to foreclosure and how the foreclosure process works may help simplify the struggle as a whole. Looking at the effects of foreclosure and different types of foreclosure can also strengthen this understanding. What often leads to foreclosure is falling behind on mortgage payments.

When a scheduled mortgage payment is missed, the initial foreclosure process starts, but not right away. Usually, foreclosure does not go into full effect until there are three missed delinquent payments. In many cases, this is after about 90 days of missed mortgage payments.

At this point, four things can happen. Foreclosure can start in the form of judicial foreclosure or nonjudicial foreclosure. A deed in lieu of foreclosure can take effect or a short sale of the home can sometimes solve the dilemma. There are various legal options related to the home loan before foreclosure like pre-foreclosure mediation.

The effects of foreclosure often involve going to court for judicial foreclosure after which the house is sold. Nonjudicial foreclosures involve a similar process, except going to court is unnecessary. This can change to judicial foreclosure if you appeal the foreclosure decision. These processes involve moving out of the home, leaving many people in search for a new living space.

Strategies to Avoid Foreclosure

There are several legal options for foreclosure that include home loan modification, a new repayment plan, forbearance, reinstatement, and refinancing. Home loan modification means you will be able to negotiate lower monthly payments, lower interest rates, or forgiving part of the debt. A new repayment plan can add missed payments to the usual monthly payments.

Forbearance is when the lender allows you to temporarily pause monthly mortgage payments. However, this may require making extra payments later. Reinstatement means you will make a deal with the lender to pay back missed payments and late fees at a later date. Refinancing means replacing the original home loan with a new loan.

Other ways to prevent foreclosure include learning about your mortgage rights when you miss payments and enforcing these with the lender. You can take control yourself by exploring create ways to make mortgage payments, whether this be selling assets or prioritizing spending with budgeting. There are also several online resources for preventing foreclosure, HUD-approved housing counselors, and lawyers who can help you explore appeals and bankruptcy options. Bankruptcy can sometimes stop foreclosure.

Call Tom Bible Law for Legal Help

You may have more legal options for foreclosure than expected. All you have to do is contact us at Tom Bible Law by dialing (423) 424-3116 for a consultation today about your financial options related to foreclosure. Our dedicated team of Tennessee bankruptcy attorneys are here to guide you through legal options related to bankruptcy to help overcome foreclosure. We are located in the Tennessee cities of Chattanooga, Kingsport, and Tullahoma.

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