When financial hardship hits, it often does so suddenly and without warning. If financial hardship has caused a person to fall behind on their mortgage payments, they should act quickly. Taking immediate action to defend against foreclosure can significantly mitigate the negative financial impacts of foreclosure. If a person is in foreclosure or at risk of losing their home, they should contact a Tampa foreclosure attorney as soon as possible.
In light of the recent scandals surrounding foreclosures, the benefits of being represented by counsel in a foreclosure action cannot be understated. An experienced Tampa foreclosure attorney can advise a homeowner on both settlement payouts as well as loss mitigation options. If the homeowner prefers to keep the home, the attorney can often negotiate repayment plans with the lender. In some instances, the attorney may even be able to reduce the principal owed or even reverse the foreclosure process and save the borrower’s home. Specifically, a real estate attorney familiar with the foreclosure process may be able to obtain limited levels of debt forgiveness, a refinancing the balance of the loan, a re-defined loan amortization schedule or modified payment plan.
In the event that retention of the home is untenable, the attorney can advise the borrower on the proper strategies available to limit the borrower’s financial damage. These strategies often come in the form of loss mitigation options. For example, an experienced real estate attorney may be able to negotiate a short sale with the bank. In a short sale, the homeowner sells a property for less than the property is worth, typically the balance of the outstanding debt. Alternatively, if the bank does not approve a short sale, the attorney may be able to negotiate with the lender and convince them to accept a deed in lieu of pursuing a foreclosure. This transfers title of the property to the bank in exchange for a voluntary dismissal of the borrower’s debt obligation.
All of the above-referenced options are complicated and they provide borrowers with different levels of relief. Deciding between them should not be done without care, as choosing the proper option could make the difference between a person keeping or losing their home. If mortgage foreclosure threatens someone you know, encourage them to contact a Tampa real estate attorney immediately.