You finally have a house of your own. You did not have enough money to buy it, but thanks to your mortgage loan, you finally collected enough money to purchase your home. Now all you need to do is pay for it. It's easy, right?
It is not that easy for most people. According to real estate and finance statistics and long island bankruptcy lawyers, a mortgage loan is most likely the largest debt most people incur. By law, your home is collateral for the loan. You need to pay the debt with interest from over 15 to 30 years to keep the property. Inability to pay the debt will give the lender the right to take back the property and use the costs to cover the debt.
It is important that you meet the monthly installments if you want to keep your home. According to bankruptcy and foreclosure lawyers, the installments typically include other fees such as taxes, interest, insurance, and the principal, collectively known as the PITI.
What will happen if you can't pay for your property anymore? Most likely, the bank will subject your house to foreclosure. Your mortgagor's rights of redeeming the estate are extinguished when this happens. This will terminate all your rights as a mortgagor and homeowner. Your estate will become the property of the lending institution.
In Long Island alone, foreclosure numbers skyrocket every day. 4.8 million out of one hundred twenty million homes in the United States face foreclosure. Some of these homeowners were able to get out of the foreclosure threat, but the bank seized other properties because the owners were late for their mortgage payments.
It is time to consider getting a lawyer once you face foreclosure. It is a bad idea to represent yourself, and a good foreclosure lawyer will effectively defend your case and delay property seizure. A foreclosure lawyer will do the following:
- Examine the terms and conditions of your purchase agreement, mortgage contract, and other relevant documents thoroughly.
- Gain complete understanding of your personal and financial situation, objectives, and interests.
- Analyze why you failed to pay mortgage on time to explain your situation better at court. He or she may discover mitigating circumstances such as illness or joblessness.
- Build up an arsenal of foreclosure defenses and counterclaims.
- Assess a number of alternate options to foreclosure.
- Negotiate with your lender or the bank to figure out a way around foreclosure.
- Zealously defend you and your interests in court filings and proceedings.
You need to remember that a foreclosure attorney's opportunities for helping you avoid property seizure rely a lot on timing. The earlier you hire a foreclosure lawyer, the more chances and options he will get. Hire an attorney as soon as you get a foreclosure notice to help him or her build up a solid defense for your case.