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Due to the melt down of the U.S. housing industry, many more homeowners than ever before are in need of a foreclosure defense attorney. The economy has soured due to a variety of reasons including unemployment, home prices that soared too high too quickly (otherwise known as the bursting of the housing bubble), and mortgages that were given out without proper income verification or down payments. All of these items have had the domino effect in terms of huge numbers in foreclosures. What is a foreclosure? This is a legal action taken by the mortgage lender, usually a bank, who holds the note on a home. When a homeowner takes out a mortgage, he or she signs a legal contract stating that monthly payments in an agreed upon amount will be made. The contractual agreement states that if payments aren’t made, the house is repossessed by the lender. Why haven’t the payments been made? Many people have lost their jobs and need to relocate. In the old days, this would just mean selling the house. The problem with our current housing situation is that most people aren’t able to sell and move on because they are upside-down on their loans. Being upside-down on a loan means that one owes more than the property is worth. Very few people can afford to pay the bank to get rid of their home. If they had excess money to burn, they wouldn’t have stopped making their mortgage payments in the first place. Some steps that homeowners can do to save their home include: - Borrow from another source to pay off their mortgage. Is there a rich relative or winning lottery ticket lying around? Probably not, so on to the next option. - Refinance or reconfigure the loan into one with smaller payments. If the homeowner has good credit, this is sometimes a possibility. The banks have ended up with so many repossessed properties on their hands that they’ve become more flexible in working out alternative plans. - Short sale: In a short sale, the homeowner may not save their home, but they may end up in a more favorable credit situation. This is where the property is sold to someone at a lower cost than what is currently owed. This requires a savvy realtor and a bank that is willing to take less money. - Chapter 13: This is where a foreclosure defense attorney comes into play. In a Chapter 13 filing, a person can restructure their debts and keep their house. When a lawyer steps in to help with this option, the foreclosure action is halted before the property is put up on the auction block. Don’t delay; contact a foreclosure defense attorney to save your home before it’s too late. Though hopefully you'll never need a foreclosure defense attorney, Chicago has some of the best. Find one today at http://www.sulaimanlaw.com/.
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