Fearing Foreclosure? Tips to Find a Suitable Attorney

• 8 May 2019
• Foreclosure Lawyer

What is a Foreclosure?

When a lender tries to recuperate the balance of a loan from a borrower who has not kept up with his or her obligations for timely payment, it is called a foreclosure. The lender usually asks for collateral before giving a loan and that collateral is the house, business or building they are buying. If payments are not made, then the lender can force the sale of the property. This is how the lender recovers the balance of the loan that is owed.

If the courts sell a mortgaged property, then it is said to be sold under a judicial foreclosure. The money from the sale would first go to pay off the mortgage. Other lien holders would then be paid off and finally, the borrower or mortgagor would get any proceeds that are left. A judicial foreclosure starts with the lender filing a lawsuit against the borrower. Notification requirements vary from state to state, but each state does require that all parties are notified that foreclosure is happening. Most judicial decisions are done in a local or state court but some rare times it is done in the US federal courts.

Consequences of a Foreclosure?

The biggest and one of the most harrowing down-hits anyone will see financially is generally on their credit score. Many time’s their credit score will dip 250-280 points. A foreclosure lawyer can also inform the borrowers if they owe taxes on the borrowed money that is not paid back and if taxes are owed. This is considered income and taxes must be paid. The home may sell for more than what the borrower took a mortgage out for and thus creating capital gains.

Borrowers who have defaulted on loans or have gone into foreclosure on a home or property will normally have to wait anywhere between 2 and 7 years to buy another property. Most lenders will require a decent waiting period before giving the borrower another loan.

A foreclosure may also hurt a person who is looking for another job in the financial field. Employers are required to notify applicants before conducting a credit check and many companies will not do credit checks unless you are intending to be in the financial field.

Why Having an Attorney is Important?

It is important to get an attorney into the foreclosure process as soon as possible. A foreclosure attorney may be able to stop the foreclosure by working out a deal with your lender. This would allow you and your family to stay in the home.

A lawyer can help you to modify your loan. This is an agreement between the lender and the borrower and it changes the first loan agreement. This modification may extend the life of the loan or lower the interest rate. Your foreclosure attorney will examine any paperwork to make sure there is no advances or fees that are improper.

Tips for Finding the Most Suitable Foreclosure Attorney

Make sure your foreclosure lawyer is licensed in the state where the foreclosure is taking place and that the attorney is in good standing with the state bar. Your attorney should also be making all court appearance on your behalf, and be filing all the paperwork on time in the courts. He or she should also be attending the mediation hearings on your behalf and fight for your interest until there is a solution. Your attorney should also review all information before making any decisions on your behalf.

Why Trust the Radow Law Group?

Your attorney at the Radow Law Group can make sure that the lender follows all the rules when processing a loan modification application. The lender must follow strict requirements. Your foreclosure lawyer will fight your foreclosure and be there to defend and protect your legal rights.