Seeking financial and legal counsel throughout the process of fighting foreclosure is essential. Things almost never work out well if you do nothing or just hope for the best. The earlier you start seeking guidance from reputable sources, the better.
If you’ve fallen behind on your mortgage payments – or even if you know you will in the coming months – talking to an attorney, credit/debt counselors and starting a dialogue with your lender early in the process is important.
If your financial situation has changed – you’ve lost your job or taken a position paying substantially less, gone through a divorce or been disabled, etc. – be honest with yourself about the future and start planning now. If your mortgage is high and your financial situation has changed dramatically, survey the landscape, seek counsel and start weighing your options.
In some cases, embracing foreclosure early in the game might save you a lot of money and heartbreak, allowing you to walk away with some cash, salvage most of your credit rating, and move on with your life. However, in most cases, foreclosure can be avoided by making the right moves at the right times. Restructuring your debt, getting a loan modification, refinancing your mortgage or even declaring some forms of personal bankruptcy are options available to homeowners in trouble. Consider your options and speak with an attorney who understands them too.
You might NOT need a foreclosure attorney, especially if you’re reaching out for help early in the process. Consider speaking with an experienced loan modification attorney in California—a lawyer who has helped clients throughout this past decade’s mortgage crisis and understands all the nuanced options for helping you stay in your home.
And if staying in your home truly is your top priority, decide on the outcome you want and speak with a loan modification attorney in California who can present the options available to you, including loan modifications that will reduce the balance or your mortgage. A solid attorney also can walk you through the various forms of bankruptcy, many of which are far less devastating financially than you imagine.
A knowledgeable attorney will advise you to seek counseling, frequently with counselors certified by the Department of Housing and Urban Development (HUD) in your area. Even before you seek legal help, these counselors can help you work with your lender directly, and lay the groundwork for collaborating with an attorney.
And if you decide you do need to speak with a California loan modification attorney, it’s okay to search online. Just be thorough. Check national websites for local legal referrals and reach out to agencies such as the National Association of Consumer Advocates (NACA) and the Institute for Foreclosure Legal Assistance either by phone or online. Both organizations have referrals on their websites.
And don’t jump at your first option. Foreclosure is one of the most important challenges you’ll ever face. Make sure the one you choose is more than just competent, but that he or she is a good fit for you. Someone who understands your long-term game plan and can help you achieve your debt refinancing or loan restructuring goals. And, once you understand their billing rates and how they bill. Make sure you understand all associated fees and billing practices.