Are you at a crossroads about hiring a foreclosure lawyer?
You likely aren’t alone. In the U.S., about one in every 4,000 homes are foreclosed, and most of these households turn to foreclosure lawyers to help them navigate the issue.
While homeownership is one of the joys of life, these properties don’t come cheap. Most buyers resort to taking out a mortgage. If you’re unable to keep up with your mortgage payments, your lender can repossess the home and sell it to recoup their money.
Foreclosure is a legal process that includes multiple steps. Just because you’ve defaulted on your mortgage doesn’t necessarily mean that you should lose the property.
Read on to learn whether you should hire a foreclosure lawyer.
When You May Skip on Hiring a Foreclosure Lawyer
As you may already know, hiring a foreclosure attorney is not a must. The foreclosure process can complete successfully without any input from a lawyer on your part.
The basic principle behind foreclosure is simple and straightforward: when a mortgage borrower is 3-6 months behind on payments, the lender has the legal right to initiate foreclosure. The specific amount of time varies from lender to lender.
If you’ve met the lender’s threshold of the time you can go without paying up, the lender will send a notice of default. This gives you 30 days from receipt of the note to bring your account to good standing.
In general, if you’re unable to pay the loan and you’re prepared to lose the home, there’s no need to hire a foreclosure attorney. You’ll just wait for the process to play out and leave the home when it’s time to do so.
When It’s Advisable to Lawyer-Up
There are a number of instances that might compel you to hire a foreclosure attorney.
First, if you have reason to believe that your lender has violated your rights when pursuing the foreclosure, an attorney can help prove your case. For example, if the lender issues you with a notice of default after only a month of skipping a payment, you may have a case against them – depending on foreclosure laws in your state.
Or, perhaps the lender has made errors with your account. Maybe it’s in good standing but the lender claims you haven’t paid. If filing a claim or dispute with the lender doesn’t solve the issue, you need an attorney to help you set the record straight.
When you’re at risk of foreclosure (and foreclosure rates are up, as you Sell My Houser indicates), you can apply for loan modification or pursue another loss mitigation option. If you have either of these requests filed with the lender but they’re still aggressively pursuing foreclosure of your home, it’s like that your rights are being violated. Hire a lawyer immediately.
Know When to Call a Foreclosure Attorney
Foreclosure is a distressing process. However, both you and your lender have legal rights. Knowing when to hire a foreclosure lawyer can make a big difference, whether you’re fighting to keep your home or want your rights to be respected.
Keep tabs on our blog for more legal tips and advice.
Read more: How a Mortgage Broker Can Help You When Applying for a Home Loan
