Avoiding Foreclosure

Buying a home is a huge investment. It could very well be the most significant purchase of a person's life. Unless a buyer can pay for the house in one transaction, it usually takes many payments before the house is paid off. When a person buys a house, he or she usually sets up a loan through another institution and makes monthly payments to the institution. It is important to be punctual with house payments because of the severity of the consequences.

When a homeowner fails to make the house payments on time, the home begins to foreclose. The bank or loaning institution sends the homeowner a Notice of Default (NOD), and the homeowner is generally given a certain amount of time to regroup, reprioritize, and try to make the proper payments to avoid going into foreclosure.

Homeowner Options

The homeowner has several options at this point. The first and least complicated option is to make the proper payments and proceed forward. This may be done if the homeowner merely forgot to make the payments or for a short time was unable to do so. If this is the case, the homeowner may be able to file a Partial Claim by agreeing to a Promissory Note. The Promissory Note must be paid back either when the home is sold sometime in the future or when the initial mortgage is paid. Under this procedure, the U.S. Department of Housing and Urban Development covers the outstanding shortage in the homeowner's payments.

Most often, however, the homeowner has to modify the loan in order not to lose the home. Refinancing the home could be a tedious process, but it may be a good option in the long run. It is important to investigate interest rates during refinancing. A fixed interest rate is better than not because it is dependable. If a person knows that the interest rate will not fluctuate, he or she may plan accordingly. Another common incentive for refinancing is if the value of the home is greater than the current mortgage. A person who has good credit history and makes timely payments is also in a good position to refinance the home.

In some situations, when a homeowner is notified that the home will be going into foreclosure, it may be possible for the homeowner to come to an agreement with the loaning institution that decreases the monthly payment either permanently or for a specific amount of time. In order for the lender to approve such action, however, the homeowner must provide satisfactory evidence for the cause, such as an income loss. In addition, the lending institution must have proof that the payments will be paid on time. Not every lending institution will agree to this sort of modification.

Real Estate Lawyer Serving Near You

If you are facing foreclosure and are wondering what to do, it is important that you immediately seek the help of a reliable Phoenix real estate lawyer. It is important that you understand your options so that you can make the most informed decision for your situation. At Finter Decker, PLLC, you can be assured of dedicated assistance from lawyers Aaron M. Finter and Adam B. Decker. They have recently opened this real estate firm, and they are ready to prove their competence and commitment to their clients. The training both attorneys have received—not to mention their experience at other firms—has prepared them well to serve you now. Foreclosure may be avoidable with the right kind of legal assistance.

For more information, contact a Phoenix foreclosure attorney from the law firm today!