The recent economic recession brought up a lot of discussion surrounding real estate and the foreclosure process. Although both the economy and the real estate market have mostly recovered from that difficult time, there are still people facing foreclosure today. There will always be foreclosures in the real estate industry. Without as much attention surrounding it, it can be difficult to know what to do when you are facing a foreclosure.
Look over your paperwork
Your housing paperwork might be shoved into the bottom of a filing cabinet in the basement or somewhere in storage, but you will want access to those papers. Depending on how long ago you took out your mortgage, it is even possible that your mortgage company no longer has your housing paperwork. This paperwork will help you with negotiations. For example, your mortgage company may require you to pay for your house in full, after a couple of missed mortgage payments. If this is not in your initial contract, however, it may not hold up. Tracking down this paperwork will be helpful to your real estate attorney.
Contact a real estate attorney
It can be difficult to make negotiations with your mortgage company. In many cases, it can be impossible to even get a live person to talk to about your mortgage. This is why it is so important to work with a real estate attorney. An attorney will handle the communications with your mortgage company. They will find out your mortgage possibilities and attempt to negotiate a deal or some type of settlement that will allow you to hold onto your house. Approximately 1 out of every 200 homes will be foreclosed upon. State laws provide strict regulations regarding proper notices and opportunities to pay before the property is sold in a foreclosure sale. If your home mortgage is at risk of foreclosure, you should consult an attorney as soon as possible.
Don?t skip later payments
While it may seem difficult to come up with a couple months of missed payments, it is almost impossible to come up with a year of missed mortgage payments. Many people get into the habit of not paying when they are already late a couple of months. This can be a mistake, as it puts you in a financial situation that is even harder to come out of. Even if your mortgage company will not take the next payments, it is smart to put the money into an account to pay once the missed months are caught up.
Research the eviction process in your home state
When a house goes into foreclosure, the bank has to follow strict acts. This means notifying the homeowner that they are late, giving them the opportunity to make up the missed payments, and informing them of the foreclosure sale. If you are unable to save your home from foreclosure, make sure you understand the eviction process in your home state. Don?t let the bank push you out, while you still legally have ownership of the house. Working with a real estate attorney will ensure that you are aware of these state specific property laws.
Work with an attorney on repairing your credit
You also don?t want your previous foreclosure to ruin the rest of your financial life. Continue working with your real estate attorney on repairing your credit, so you can own again. Remember, you are not alone and many others have gone through a similar foreclosure process and eventually, purchased a home again. In fact, one in every 96 homes reported at least one foreclosure filing in 2013.
Although not quite as common as years ago, foreclosures can and still do happen. Going through a mortgage foreclosure can be confusing and overwhelming. Working with a real estate attorney can help you navigate the process and ensure that your rights are being protected. The real estate attorney can also prove to be a valuable part of the foreclosure negotiation process.