Many individuals and families are faced with the difficult situation of having their homes go into foreclosure. A foreclosure can be caused by many factors, such as job loss, an unexpected illness, or an unexpected divorce.
The idea that you may lose your family home to foreclosure can have a severe impact on both your finances and emotional well-being. Falling into default on a mortgage is always a serious matter, and even a single missed payment can justify a lender working to seize this property. Thankfully, there are steps that you can take to prevent this loss. At Daneri Diez, we have experienced real estate attorneys who can help navigate the foreclosure process. Do not hesitate to get in touch with a Miami Shores foreclosure defense lawyer who could walk you through your options.
The Foreclosure Process and What Lenders Must Do to Seize a Home
Banks cannot act whenever they want to force a family out of a home. In fact, there are many procedures in place to give homeowners fair warning of a default and the chance to defend their apparent non-payment in court.
Foreclosures usually begin with the lender’s notice to the borrower that their account is in default. If a borrower fails to make the account current, the lender can start the legal foreclosure process by filing a formal lawsuit in a local courthouse demanding the seizure of the property. Upon receiving service of the complaint, the borrower has twenty days to respond to the lawsuit or risk the entry of a final judgment for failure to file an answer. Regardless of what stage of foreclosure your house is in, a Miami Shores foreclosure defense attorney could help to communicate with a lender or the courts to help keep you in your home.
Filing for Bankruptcy Protection is One Way to Protect a Family Home
Both Chapter 7 and Chapter 13 bankruptcy plans can help homeowners to discharge many forms of debt. This includes any debt that accrues from a mortgage on a family home. In a Chapter 7 plan, the court will order the liquidation of many assets in exchange for a discharge of debt. By contrast, Chapter 13 plans allow a person to keep many assets, but they must make monthly payments to the court over the course of three to five years.
As a Miami Shores attorney could explain, one of the main benefits of filing for bankruptcy is that your homestead property is an exempt asset that you can safely retain while eliminating bad debt. Combined with the stay of all active litigation against the debtor and his/ her assets, this often results in homeowners discharging unsecured debt, entering into a new and more affordable payment plan with the mortgage company, and even reducing the price of certain personal property, in a single action.
Exploring Alternatives to Bankruptcy in Miami Shores
Of course, bankruptcy might not be the only option for saving a property. A local foreclosure defense lawyer could work to help homeowners explore other potential choices for your specific scenario and objective.
A common solution is to enter into negotiations with the mortgage company. Foreclosure is a timely and expensive legal process that can be resolved through an agreement with the lender. If a mortgage company determines that they will receive regular payments from a homeowner in the future, they are likely to participate in negotiations to modify or refinance the loan. Other possible alternatives to foreclosure include:
- Loan Modification
- Short Sale Negotiation
- Deed in Lieu of Foreclosure
- Cash for Keys
An experienced attorney could explain these options in more detail and help someone determine what makes the most sense for their situation.
Reach Out to a Miami Shores Foreclosure Defense Attorney Now
Learning that a bank or other lender has initiated foreclosure proceedings on your home should result in immediate action. While foreclosure itself is a lengthy legal process, starting to promote a powerful defense can occur immediately.
A Miami Shores foreclosure defense lawyer is ready to help you with that process. This includes disputing missed payments, challenging the legal process involved in seeking a foreclosure, and representing your interests in negotiating a new mortgage plan. In addition, if bankruptcy is the right choice, we are here to gather the necessary documentation and submit it to the court on your behalf. If you or someone you know is facing foreclosure, contact us at Daneri Diez today for a free, no-obligation consultation.