Foreclosures are common nowadays with the rising number of people failing to pay their mortgages. These situations, however, can be dealt with accordingly with the best Long Island foreclosure defense lawyers taking the case. The legal experts will devise a strategic defense to keep clients from losing their homes. In some cases, a client’s best option is to try other alternatives in case the lender, which is the plaintiff in this case, has a strong case to foreclose a property. Common alternatives include the following:
Short sale is defined as the procedure of selling a property with lower value than the actual mortgage loan and one of the commonly used solutions in facing foreclosure suits. According to Long Island foreclosure defense attorneys, a short sale is better than suffering the consequences brought by foreclosure. When the property is on the market and sold, the lender will forgive the difference in the loaned amount, which means the client will be free from the foreclosure case. For short sale, the client must look for a reliable real estate agent who can put the property on sale.
Aside from finding the best real estate agent, a lawyer will verify if the client is eligible for short sales. Common qualifiers are increased mortgage payments, divorce, heavy debts, and unemployment.
Repayment plans are also common as they help clients negotiate with the lender to pay the mortgage within a specific period of time. In this option, the client will pay current mortgages together with a portion of their back payments. Hence, instead of paying the back payments in full, they can include a percentage of monthly payments they failed to pay with their regular monthly mortgage. This alternative’s primary benefit is that payments are considerably lighter and easier to manage, keeping clients from being overwhelmed with their financial issues. A Long Island foreclosure defense lawyer can recommend this option if he finds the client to be qualified according to the state regulations and lender’s policies.
Loan modification is the option where the client can reduce loan amount and monthly payment. Many experts recommend this option because of the number of mortgage elements that can be reduced, ultimately leading to budget-friendly mortgages and payments. A mortgage is composed of numerous factors like the actual loan amount, remaining balance, loan terms, and interest. Clients can look for opportunities to reduce any of these elements and obtain a cheaper monthly payment and mortgage.
Although a promising solution, going for mortgage modification requires full documentation and qualification according to the lender’s standards. A Long Island foreclosure defense attorney can help the client with documentation to ensure the client will not miss any vital detail.
Deed in Lieu
Deed in lieu is the process of handling the property to the lender. Most people mistake this as the actual foreclosure process, but the truth is it’s an immediate solution to prevent foreclosure from getting into the client’s records.
This alternative is often the best option for those who can’t settle the foreclosure defense and ineligible for short sale. Despite the client needs to hand the property, he can still live in it for some time as the procedure is being completed. After granting the motion, the client needs to follow specific procedures as indicated on the regulation. Although this procedure is basically the same, several specifications vary depending on the lender’s policies.
Without a doubt, a Long Island foreclosure defense lawyer can offer numerous alternatives to clients facing this case. However, they make sure that they recommend these alternatives as the client’s last resort. Lawyers make sure to give solid defense first according to the presented documents and help in saving the client from foreclosures.