Those who have fallen behind on their mortgage payments and are facing foreclosure can still take steps to save their home. Here, readers can learn how to file for bankruptcy, apply for a mortgage modification or hire a law firm in Silver Spring, MD to file suit against a lender to stop or delay the foreclosure.
File for Bankruptcy
If a foreclosure sale is approaching, a bankruptcy filing can stop it immediately. Once the petition is filed, an automatic stay goes into effect. The stay works as an injunction that stops the lender from pursuing further collection attempts or foreclosing on the property. However, a lender may file a motion to obtain relief from the stay. Even if the motion is granted, the foreclosure will be delayed for a few months, which gives the borrower time to seek other alternatives.
Applying for a Modification
While it’s not good to wait until the eleventh hour with this tactic, a homeowner can delay a foreclosure by seeking a loan modification. Most lenders are prohibited from dual tracking, which occurs when they proceed with a foreclosure in the face of a pending loss mitigation application. If the modification is granted, the foreclosure process is halted as long as the borrower stays current with mortgage payments.
Filing a Lawsuit
If the lender uses a non-judicial process to initiate a foreclosure, the borrower may be able to stop or delay the foreclosure by filing a suit against the lender. This tactic will not work for judicial foreclosures, because by the time the sale rolls around, the borrower has already had a chance to tell their story in court. If a borrower cannot prove his or her case with the help of a law firm in Silver Spring, MD, the foreclosure will only be delayed.
Homeownership can be a satisfying and exciting proposition, but many borrowers find themselves unable to keep up with mortgage payments. No one wants to face foreclosure, but it is inevitable if the borrower gets too far behind. By learning the options for delaying or stopping foreclosure and by hiring a law firm in Silver Spring, MD like website, a borrower can prolong the process and potentially save his or her home.
