Frequently Asked Questions
QUESTION: Why should we hire a foreclosure attorney to represent us or modify our loan?
ANSWER:An experienced foreclosure attorney is in the best position to get you the best results. In all states, only an attorney is permitted to represent a homeowner to negotiate mortgage debt on behalf of a consumer. Experienced foreclosure attorneys have established legal strategies, understand the available program guidelines and what it takes to qualify. A foreclosure attorney can give you guidance and represent you during the entire negotiation.
QUESTION: Is my lender interested in modifying my loan?
ANSWER: It is often in the lender’s best interest to keep you in your home. Banks can lose up to 40% of their investment when they foreclose on your home. They must pay for the foreclosure, necessary repairs, commissions and closing costs once the property sells, and more. The property can also have other risks and liabilities while in the bank’s possession. It is often a wiser investment choice for the bank to allow you to stay in your home with reduced payments.
QUESTION: Do your foreclosure attorneys work with all lenders and servicers?
ANSWER: Yes. Our foreclosure attorneys will work with any and all lenders and servicers and the results will typically vary with each. The results will depend not only upon your lender, but also the specific details of your case. Our experienced foreclosure attorneys have established contacts at all major lending institutions. These relationships have benefited our clients as most major lenders are notoriously difficult for consumers to deal with.
QUESTION: Do I need to be delinquent or behind on my mortgage payments to qualify for assistance?
ANSWER: No. Most mortgage relief programs are meant to help people in financial hardship. Having struggled to maintain your payments despite financial hardship is looked upon favorably in the negotiation process. As soon as you see your mortgage payments becoming difficult, you should hire a foreclosure lawyer to fix the situation. Your foreclosure attorney will help you choose a strategy that is right for you.
QUESTION: What do you look for in an ideal foreclosure defense client?
ANSWER: Our attorneys can help anyone in financial trouble, but certain conditions can make our job easier. Ideal foreclosure defense clients are those homeowners who:
- are already in foreclosure
- have received a notice of default
- have an adjustable-rate mortgage that has already increased
- have negative amortization loans or other bad/predatory loans
- have a loan amount which is greater than the value of the house (Underwater/negative equity)
- are experiencing legitimate financial hardship
QUESTION:Can your foreclosure attorneys help me with properties that I’m not living in or currently renting out?
ANSWER: Yes. There is assistance available for non-owner occupied properties, especially since June of 2012. In the past year, many New program have been developed for non-owner occupied properties. Ask your foreclosure lawyer what options are available.
QUESTION: Will I have tax consequences from a loan modification, principal reduction, or other foreclosure alternative?
ANSWER: The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure (deficiency balance), qualifies for this relief. Seeking the opinion of a local tax professional is advised.
QUESTION: Will a loan modification affect my credit?
ANSWER: It depends. The loan modification process itself can adversely impact your credit rating in the short term. However, if you are already behind in your mortgage payments, your credit has already been affected. A loan modification will actually improve your credit worthiness by reducing your monthly obligations and bringing your mortgage back to a current status. Our primary objective when working with you is to keep you in your home. Modifying your mortgage terms is the easiest way to do so.
QUESTION: Is there a guarantee that my loan will be modified and I can save my home?
ANSWER: No. Each and every homeowner’s case is different. We perform a thorough evaluation of your situation to determine your viability for loan modification and other foreclosure alternatives. If you are not a good candidate for loan modification, we will let you know and may be able to offer other possible solutions. If someone is guaranteeing that your loan can be modified, be careful! ALL state bar associations strictly prohibit attorneys from making promises or guarantees of outcomes. The Federal Trade Commission (FTC) strictly prohibits any non-attorney firm, company, or organization from representing distressed homeowners. In short, you should NEVER hear a guarantee!
QUESTION: Can we negotiate ourselves?
ANSWER: Yes, though it is difficult and extremely time consuming. In short, it is not recommended. You want to ensure that you get the best terms possible. Our foreclosure attorneys have experience dealing with big banks and servicers. We have the experience to get you the best terms possible, in the shortest amount of time. It is always our goal to keep you in your home. Remember, the banks have attorneys working to get them the best deal possible, and so should you!
Additionally, the lender will have its legal counsel prepare documentation expressing the new terms of the loan. You should have a foreclosure attorney review these documents to ensure the terms and conditions mean what you think they do.
QUESTION: What are your fees?
ANSWER: We have a fee schedule that we review with each client during our initial meeting. Our retainer agreements give you an affordable payment plan built right into our process, instead of a hefty “upfront” fee. For pricing in your state, please contact an agent at (866) 797-4922!
QUESTION: How do we get started?
ANSWER: The first step is allowing a foreclosure attorney to get a clear understanding of your current situation. We do this by gathering detailed information from you regarding your current financial situation and mortgage information. You can provide this information by calling our office at (866) 797-4922. Full documentation will be required once we agree to move forward with your case.
QUESTION: How long will this take?
ANSWER: Every case is different and it depends mostly on the response times of your particular lender. You can help the process with timely responses to your foreclosure attorney and any requests for information. From start to finish, the process typically takes about four months. Most lenders are amenable to suspending foreclosure proceedings during this negotiation process, and in some states like California they are legally required to do so.
QUESTION: What if my home is already in foreclosure?
ANSWER: It may not be too late. Depending on where you are in the process, there is still hope. Because we are a law firm, our foreclosure lawyers sometimes have the ability to delay foreclosures through the court system or by negotiating with your lender. One of the advantages of hiring a foreclosure attorney is that your lender is more likely to halt the foreclosure process. This gives us enough time to modify your loan or find some other foreclosure alternative.
QUESTION: What forms of payment do you accept?
ANSWER: We accept all major forms of payment. We accept Visa, Mastercard, Discover, Cashier’s checks, ACH payments, and more. Check with an agent to discuss your options.