Defending Against Judicial Foreclosure
In a judicial foreclosure, the lender files a lawsuit in state court. You will receive a foreclosure complaint, petition, or similar document, along with a summons. The summons will notify you about your rights and state how many days you have to formally respond in writing (called the answer) to the complaint, usually 20 or 30 days.
What goes in the answer. An answer, which you must file with the court and serve to the foreclosing party, should include:
a response to each numbered paragraph in the complaint stating whether you admit, deny, or don’t have sufficient information to respond (and therefore deny) the allegations in the paragraph (if you admit an allegation, the lender does not have to provide proof of that allegation) your defenses (for example, you’re not actually behind in payments) or affirmative defenses (why the court shouldn’t let the lender foreclose), and any counterclaims (your claims that the lender has violated other laws).
Short Sale or Loan Modification
These are unprecedented times in our country’s economic history. Unfortunately, foreclosure and financial distress is reaching into the lives of millions of American homeowners. If you or anyone you know is experiencing hardship we want to let you know we are here to help, and are happy to assist you in discussing your options and determining which solution is best for you. All consultations are at NO cost and completely confidential.
If you’re having trouble deciding whether your property qualifies for a short sale or you want to stay in your home and request a mortgage modification, give us a call.
What Are the Benefits of a Loan Modification?
Loan modification can change one or more of the terms of your loan to provide relief if you are financially stressed by the coronavirus pandemic or otherwise. Modifications can include:
Reducing your interest rate
Changing a variable interest rate to a fixed one
Extending the term length
The extended loan term compensates the lender for the reduced interest rate or payment. So your 30-year mortgage might become a 40-year one, Broeker says.
But in exchange you'll get:
A reduced payment. If you can reduce your monthly payment, it could be just the relief you need to pull through tough times.
A chance to keep your home. Banks prefer to avoid foreclosure because it's an expensive process. The best outcome for the homeowner and the bank is a loan modification to make continued payments possible.