Tips that Can Help You Handle Your Foreclosure Case
As the economy continues to struggle and more people find themselves unable to keep up with their mortgage payments, foreclosure cases will continue to rise. Foreclosure auctions can be challenging for all parties, most of all because they require a judge's decision. The tips highlighted below can help you handle your case better if you are facing foreclosure proceedings.
Familiarise yourself with laws governing foreclosures
There are two types of foreclosure, administrative and judicial. Administrative foreclosures are simpler since they do not involve court hearings, while judicial ones require litigation for anyone involved to resolve disputes brought up by all sides. Judicial foreclosures allow for more room for negotiation but also carry greater risks because they require a trial if a resolution cannot be reached before that.
While some states allow a mortgage company to initiate a foreclosure case on its own, others allow only a homeowner to start this process. Some states even require that both parties go through mediation before formal litigation can begin. Knowing your state laws ahead of time will help you understand what types of arguments you can make in court and what tactics the bank will use.
Contact a professional lawyer
It is best to have a lawyer with experience in foreclosure cases handle this for you. Lawyers can help keep their potential clients updated about the latest news and developments regarding the case even when they are not present in court. They might also suggest resolutions more agreeable than what their client might otherwise consider, such as loan modifications or mortgage payment plans, so it would be wise to get them involved early on. Foreclosure cases often involve extensive paperwork and tedious legal procedures, so there is little room for error even if you hire an unqualified person to deal with your case, leading to more problems down the road.
Gather all documents related and relevant to the foreclosure
Banks are more demanding than ever, so you will need to submit all the necessary documentation they ask for exactly as they state them in their requirements. These include financial records like tax returns, payslips, and bank statements. Documents that might be needed include mortgage documents, copies of outstanding loans, and the legal status of the property in question. That will allow your lawyer to better prepare for hearings handled by the court, which you might not attend due to work or other scheduling conflicts. It would also make them aware of any issues like fraud or improper documentation executed by the lender, even if it happened before you purchased your home.
Learn about possible alternatives available
You can ask your lawyer about different programs offered by lenders that could help you escape foreclosure. These are often reserved for homeowners who have experienced an unexpected misfortune such as a loss, medical emergency, or family crisis that prevented them from making their mortgage payments. If you believe that your missed payments resulted from such circumstances, then it would be wise to immediately bring up the matter with your lawyer or lender so they can start looking for possible solutions.