Foreclosure is the formal process by which a bank or lending company takes possession of property on which a buyer has stopped making loan payments. The failure to pay is called “defaulting” or “being in default”.
Because of the recent occurrences in the field of lending, foreclosures have risen dramatically. However, foreclosure is not unavoidable.
Real estate attorneys can specialize in foreclosures, since foreclosures fall under real estate law. Seeking a foreclosure attorney’s advice may allow the house to be saved. When it comes to re-working loans (loan modification), creating a short-sale agreement, or working with the “loss mitigation” department at the lender, it is a good idea to have a lawyer help protect your rights. A foreclosure law specialist can help you determine whether you should try to negotiate a short sale, file for bankruptcy, look for “Truth in Lending Act” errors in your original loan, or offer the deed in lieu of foreclosure. It may even be that letting the lender foreclose on the house is the cheapest and best solution. Foreclosures can offer serious problems to a credit score, so it is a good idea to speak to a legal professional who can help make the most beneficial decision.