I am facing foreclosure. What should I do?

When a person is facing foreclosure, most of the time they have already tried to modify their loan, and were turned down. But if you have not done that, you should try — I can virtually assure you that it will be a long and cumbersome and frustrating process, and in my experience most people are getting turned down, but those who get the loan modification can get some really good terms, including paying 2% interest on only a portion of their mortgage with the rest of it being interest-free, re-amortizing the mortgage over 40 years, and wrapping any arrears into the modified loan.

While a loan modification can be a sweetheart deal, my anecdotal experience is that only about 10% of my clients actually get decent, workable loan modifications. It can be a long, frustrating, arduous, repetitive process, sometimes with a reward at the end.

Most people facing foreclosure have other underlying debt issues, such as second mortgages, credit card debt, taxes, etc. When you call me, we will go through all of your options, including Chapter 7 (which would usually mean you will get a loan modification or will let your house go), or curing the arrears in a Chapter 13, and possibly doing a lien strip. If losing your home is inevitable, the timing of your bankruptcy can be strategies to maximize your rights to remain in the house as long as possible while you are seeking alternate housing.
foreclosure-cartoon1

Disclaimer

Please be advised this Web site has been prepared for general information purposes only. The information on this Web site is not legal advice. Legal advice is dependent upon the specific circumstances of each situation. Also, the law may vary from state to state, so that some information in this Web site may not be correct for your jurisdiction. Finally, the information contained in this Web site is not guaranteed to be up to date. Links to third-party web sites are provided for convenience and for general information purposes only. We do not have control over the content or privacy settings of sites linked to this site. Please refer to the owners privacy policies for more information on their specific policies. E-mails or online submissions to Timothy Casey Theisen, P.A. do not constitute a client-attorney relationship. Your information is nevertheless considered confidential and will not be shared with third parties. Timothy Casey Theisen, P.A. is not responsible for information provided by linked sites.