There is more than one option open to homeowners that will help them avoid foreclosure. Learning a brief overview of these defenses and identifying what they entail can aid homeowners who are seeking choices during this difficult time. These potential remedies include:

Refinancing: A Florida foreclosure defense attorney may suggest refinancing as a viable option to avoid foreclosure. Refinancing takes place when a homeowner replaces the existing mortgage with a new one. Generally, the new mortgage agreement is accompanied by a lower interest rate and more advantageous terms and conditions.

Loan Modification: Loan modification is an option that a specialized foreclosure defense attorney can present to a homeowner. Under the Housing Bill that was passed by President Obama, homeowners who were facing foreclosure were able to go for loan modification. Essentially, the homeowner’s foreclosure defense attorney would negotiate with the lenders to modify the current mortgage. Unlike refinancing, an entirely new mortgage agreement is not created; instead, the existing mortgage is renegotiated.

Reverse Mortgage: A reverse mortgage is an excellent option that a defense attorney may suggest if applicable for the homeowner’s current situation. Through a reverse mortgage, a homeowner will not need to repay the loan at all, so long as the homeowner continues to live on that property. Although, the biggest drawback to this remedy is that it is usually only open to those who own the property and are over 62 years of age.

Short Sale Under a short sale, the homeowner will sell their mortgaged property for less than the balance owed on the loan. From there, the lender will be given the proceeds of the sale. However, before the sale of the property, the homeowner’s lawyer will negotiate with the lending agency. The lawyer’s goal is to convince the lending agency that this financial institution should agree to discount the loan balance due to economic or financial hardship. Effectively, following the sale of the house, the remaining balance is discounted.

Contesting Foreclosure: Homeowners can successfully contest the foreclosure proceeding altogether in many foreclosure cases. An experienced Fort Lauderdale foreclosure defense attorney can aid homeowners in finding the necessary legal grounds that are required to challenge the foreclosure proceedings. In some scenarios, the mortgage company might have filed the foreclosure proceedings improperly, andpotentially illegally. Additionally, mortgages are oftentimes serviced by a different entity than the one that actually owns the mortgage. Naturally, there may be miscommunication or inadequately recorded property records. A homeowner might be paying their mortgage to the incorrect lending entity and face foreclosure as a result of the lending agencies’ errors. There are also scenarios where payments have been incorrectly credited, or the amount due is miscalculated. In these events, a cautious and attentive homeowner, with the help of a well-versed foreclosure defense attorney, can contest these proceedings.

Deed In Lieu: A deed in lieu takes place when the homeowner’s lawyer negotiates with the lending agency. Afterward, the homeowner will sign over the title or deed of their property to the lending agency. In return, the bank will cancel the mortgage.

Bankruptcy: While bankruptcy may seem daunting, filing for bankruptcy may be the most beneficial solution for the homeowner. By filing for bankruptcy, all foreclosure proceedings will be halted. Not only that, the homeowner is given the opportunity to repay some of the debt and retain their home.

At Charles Injury Law, we are devoted to providing top-of-the-line representation to our clients in the South Florida region. Having served Miami-Dade, Broward and Palm Beach counties for years and expertise in a variety of legal practice areas, you can rely on our team to represent you to the fullest. Charles Injury Law, has the confidence and experience that you require and deserve to get the best potential outcome for you and your home. Contact us for your consultation today!

Lawyer Steve Charles at Charles Injury Law has extensive experience holding insurance companies accountable. Give him a call today at (954) 390-2228 or reach out online and get these worries off your back. He offers free consultations and works on a contingency basis, which means there are no out-of-pocket costs to you.