Alternatives to Foreclosure

When people buy a home, they envision owning it for their families and living in it for the rest of their days. However, this may not always be the case. Due to circumstances like the loss of a job (due to economic or medical reasons) and even job transfers and excessive debts, people aren’t always able to sustain their monthly mortgage payments. If this happens continuously, there is only one outcome — the dreaded foreclosure that equates to losing one’s greatest investment.

Real-Estate-LawThe word gained notoriety for a good reason — it is when your property is sold forcibly, as the lender’s attempt at recovering the balance of your loan. The proceeds of the selling amount goes to the lender ad to any lien holders first, with you receiving the remainder (if there’s even any left). This is what happens to the typical homeowner in tough times.

However, this does not have to happen to everyone. With a good Long Island foreclosure lawyer by your side, even this scenario can be contested through legal means.

In essence, foreclosure puts into action the right of redemption, which is an equitable right. Thus, in order to keep this right of redemption, the debtor would be able to petition the court for an injunction, effectively stopping the proceedings. If the repossession has been deemed imminent, then the debtor can ask for a temporary restraining order. Both these approaches take considerable legal awareness, and your trusted Long Island foreclosure lawyer will be your best bet. Then again, there is also the possibility of challenging the validity of the debt itself, in an attempt to stop the bank from foreclosing the property. This approach simultaneously sues the bank for damages. Such an approach weighs heavily on the idea that the lender bears the burden of proof, in order to determine that they are in a legal standing to foreclose.

Also, there are other alternatives to foreclosure. Due to collapse of the United States housing bubble and the recent mortgage crisis, a renegotiation trend appeared that is seen to be a better alternative to foreclosure. This renegotiation includes modification of the mortgage loans, making things friendlier for the buyer. In fact, the U.S. Treasury itself has sponsored programs offering incentives to renegotiated mortgages. This includes the Hope Now and the 2009 “Making Home Affordable” initiatives.

The HARP (Home Affordable Refinance Program) also allows homeowners to gain the upper hand in refinancing, if their declined home value renders them unable to obtain traditional refinancing. This makes the avoidance of foreclosure possible even in dire circumstances, but you will need the help and guidance from your trusted Long Island foreclosure lawyer in order to make the most out of it. As a rule, banks can earn more with foreclosures so they will do what they can to push you off the other end.

Having your Long Island foreclosure lawyer by your side is also a good measure against unscrupulous lenders who “dual-track” — those who process a loan modification but still carry on with the foreclosure. Unfortunately, such a practice can mislead many people, and they will be caught off guard when the property is suddenly sold at an auction. Though some states have legislated against this dual-tracking, it has not yet been eliminated in others.

Since the entire process of buying, maintaining, and even defending your home carries many legal repercussions, it is best to get a specialized person that can help you tread these shaky grounds. With you and your family’s security and future on the line along with the property, getting a reliable lawyer should be your top priority.