Property and homeowners may stop legal repossession efforts and should look at options before foreclosure proceeds and it’s too late.
Examine all Options Before Foreclosure Proceeds
Stressed out property owners in default can stop foreclosure by using several methods. But don’t wait to consult with Winter Park bankruptcy and foreclosure attorneys Eric Lanigan and Roddy Lanigan. As soon as you know that you may not be able to make a property payment or go into default, call the Lanigans.
Eric and Roddy Lanigan will look at what your financial situation is and ask what you’d like to achieve: do you want to keep the property? Do you have other overwhelming debt that you want to pay down over time or eliminate completely?
When homeowners get behind in loan payments, lien holders can and do repossess properties. There are mortgage workouts where a lender will renegotiate a mortgage that may offer:
- Lowered interest rates
- Forebearance
- Second and third mortgage elimination
Banks, credit unions, and mortgage companies are not necessarily in the business of buying and selling houses; but their goal is to make money from interest charged on loans over 15, 20, or 30 years.
Banks work with borrowers to stop mortgage foreclosure because lending institutions don’t want the house, they simply want to get the income.
Owner defaults and auctions, short sales of repossessed properties, the homeowner will not be the only loser. Foreclosures damage banks and lender’s revenue and adversely effects the local, state and national economies.
The United States housing market has created record number of foreclosures that not only hurt homeowners, but lenders who can never actually recoup losses. When owners and lenders fail to stop mortgage foreclosure, renters can be put in quick move situations being forced to move out of rental properties with no notice.
Evicted tenants can feel a pinch in the pocketbook, since relocating usually means coming up with first and last month’s rents, plus a large deposit. While federal and state governments work to stop mortgage foreclosure, if the trend continues, losses to homeowners and lenders will continue to threaten the U.S. economy.
According to statistics, a repossessed unit can cost lenders as much as $75,000 in processing fees and costs to market and liquidate.
Foreclosed homes cause area property values to go down, as vacant lots are left unkempt, rodents multiply and vandalism increases.
Banks really don’t want to repossess a borrower’s home and be forced to make properties marketable enough to sell at a profit and recoup loan balances. A bad economy could cause a foreclosed property to stay on the market for years and lenders lose principle and interest payments.
With these factors in mind, banks and lending institutions are willing to go the last mile with homeowners who sincerely want to save their properties.
Consult Attorney Eric Lanigan for Foreclosure Alternatives
Eric Lanigan and Roddy Lanigan are Winter Park bankruptcy and foreclosure attorneys who you can consult with and find out what is best for your situation. Make an informed decision after seeing bankruptcy, foreclosure and mortgage workout attorneys
