The major economic downturn that has been labeled the Great Recession of America occurred in conjunction with a collapse in the housing market. Subsequently slow in recovery, the housing market has only recently begun to heat back up, but has shown signs of sputtering even yet now. This recession caused a harsh, unforgiving climate in the U.S. economy. For this reason, there are millions of homeowners facing foreclosure in unprecedented amounts, forcing families, individuals and small businesses into serious economic struggles. While the real estate market shows signs that it is headed for improvement, the rate of foreclosures continues to be an unfortunate reality for many Arlington, Lewisville, Fort Worth, Dallas and DFW metroplex homeowners. If you are dealing with the pressure that comes from being several months or more behind on your mortgage, we would like to discuss with you your options in foreclosure prevention.
Weighing Available Choices
Your options to fight foreclosure depend largely on what your current economic situation is in your household. If you are out of work and do not foresee an immediate return ot the workplace, then your options will differ from those of someone who has faced temporary under or unemployment and has been able to secure steady ongoing work. If you want to stay in your home, we are prepared to do all that we can to help you accomplish this deep-rooted desire to remain in our home. Your Texas foreclosure attorney will discuss your options with you and you can be sure that the situation will not be sugar coated, but the goal is to provide you with real hope and real options to get the best outcome possible for you and your family and your home.
When you come to our law firm, you work closely beside you and listen carefully to your unique situation. The legal team at our office can get a better idea of the situation you are dealing with as well as the tailored solutions that can be implemented to solve the financial problems you are facing. For example, if you desire deeply to protect your house from foreclosure and remain in the home long-term, we can help you find out if this goal is within your financial reach as well as determining the necessary steps to achieve this objective.
The Bankruptcy Automatic Stay Blocks Foreclosure Permanently or Temporarily
The automatic stay is issued by the court when a bankruptcy is filed, which provides time as well as breathing room regarding funds in order for a mortgage to be brought current. In some cases, the automatic stay opens negotiations with a bank regarding mortgage modifications or loan workouts. However, many cases involve a situation where the homeowner has tried for months, or even years to obtain a loan modification and has been unsuccessful. This often results in the homeowner feeling jaded by the lack of response by the bank. In some cases, the modification was encouraged by the mortgage company in order for lender to obtain government funding.
As Temporary Solution, Bankruptcy Buys Time
If ultimate foreclosure appears imminent, and the prospect of resuming and affording the monthly payment moving forward are simply not an option, a chapter 7 bankruptcy could buy the homeowner time to remain in their home while gathering funds to be able to move forward. We seek to vet all options so that we can be sure that options do not exist which would allow you to keep the home permanently. If it appears that foreclosure prevention options are not viable, then foreclosure alternatives can be explored, such as deed-in-lieu of foreclosure or short sale. Lenders also offer cash-for-keys in which they will assist in the cost of relocation. The credit repercussions of a standard foreclosure tend to be some of the worst, and some of these other options will buy you enough time to allow you to sell the home or do something that will hurt you the least financially in the long run.
Working with an Attorney to Achieve Your Goals
Our law firm is built upon the foundation of stopping foreclosure. We realize that the people who call us are placing a great deal of trust in our firm to offer the most helpful and best possible legal advice for the situation. We know that your livelihood, your home, your belongings and your financial future hang in the balance and we want to provide the best possible outcome in assisting you. Being aware of these issues motivates us as a law firm of bankruptcy attorneys such that we work extremely hard and operate meticulously in the handling of important details to help you with your home and your finances. Foreclosure proceedings are deeply troubling by nature, and our office will do all that we can in our legal power for your sake.
What are your options if you face Foreclosure Action?
The first decision you have to make when you are facing Foreclosure Action, is whether you are going to give into it or are willing to stand up against it and defend it. If you choose the latter option, you must consult with an experienced firm of consumer protection litigators.
A Snapshot of steps leading to Foreclosure
Before we delve into the various stages of the process of foreclosure, we would like to emphasize that the legal proceedings vary from one state to another as per the state law. Seeking information for your case with a firm not based in your state of residence is a big blunder. Not only will you gather wrong information, but you may be misled as well. Our firm specializes in cases relating to Dallas and Texas. However certain claims and defenses do come under the federal law, depending on case-to-case basis.
The Foreclosure Process
In Texas, all lending banks follow the judicial foreclosure process. This process begins when the bank/lender files a lawsuit against the borrower, in the specific county Circuit Court As soon as the suit is filed, the home owner is served a notice on behalf of the bank. They are then given a timeline and an opportunity to file a counter claim to defend their rights. The main features of the State’s laws are A) Equitable Action and B) No Judicial Relief for Debtors.
The Pre-Foreclosure requirements include a series of mandatory documents and pre-requisites to be stated clearly. Foremost these include existence of two important documents which is the Mortgage deed and the Note from the borrower. This is followed by Notice of the default prepared by the lending bank. Then is required the existence of a valid dispute and finally a way to amicably resolve the conflict.
Foreclosure litigation begins with a filing of ‘Lis Pendens’ or litigation pending file against the borrower in the county court. After this, the debtor has 20 days to reply to the summons of the court with the help of an attorney. Based on the response, the court sets a date for the preliminary hearing where both parties are given time to settle amicably. If this fails, a Summary Hearing is set within 45 days after which a Foreclosure sale date is set by the court. This process has many other intermittent follow through steps which can be availed of at the discretion of the court. To take complete advantage of the system, and to fight consistently for your right to save your homes, you must be sure to hire experienced attorneys who can justify your case.
Benefits of Defending Foreclosure Action
Losing your home to Foreclosure is anyone’s worst nightmare. The repercussions can be huge and alarming on both the social and emotional front. It can and is likely to include relocating to another area or city, job changes, living away from family and friends etc. Often, the disturbing impact of such a loss affects the whole family, especially children. There is also a risk of losing a good part of your capital and savings if the home sale results in a deficiency judgment. This could affect your finances for the rest of your life, if you are not careful.
One of the ways to defend your home from foreclosure is to file for Bankruptcy. This gives debtors a substantial timeline to re-possess their home without being evicted. The timeline can range from a good three to five years.
Debtors can resort to many other defense claims against foreclosure. Doing so helps the debtors negotiate with the lenders in an attempt to save their homes with or without filing for bankruptcy. Doing so delays the entire foreclosure process so that the debtors have a chance to work on reclaiming their homes either by looking at alternate means or if lenders
Call to Learn More
Should you desire to learn about foreclosure options which are best suited for your situation, our team is standing by and will be happy to discuss options with your about saving your home or another best case scenario for your situation. Call us today!