Mortgage Problems? Don’t wait until the last minute!

28 Dec Mortgage Problems? Don’t wait until the last minute!

Your mortgage lender is foreclosing your home. What is your first step? Do you defend the foreclosure action? Do you file for bankruptcy? Do you look for a modification or workout of your mortgage? What questions do you need to ask?

All of these are valid steps in dealing with a mortgage default. Any number of reasons exist for why a mortgage lender decides to foreclose a home. You may have missed some payments or you may have failed to pay for the real estate tax bill when it came in or let the insurance lapse by mistake. The lender may have misapplied or lost your payment or improperly charged you fees that are not due. You may have valid defenses to the foreclosure or no defense at all. Whatever the reason, do not make the mistake of failing to get help.

Even if you have knowledge and experience dealing with real estate, it is a mistake to try dealing with the problem yourself. This has been a common problem of late and I have seen many individuals lose their homes because they did not seek out competent help from the beginning.

In one case, a couple were attempting to deal with the “workout department” of their lender, all the while a foreclosure was continuing on their home. At the end, the lender refused to complete a modification of the mortgage because the lender already owned the house in foreclosure. In another case, a real estate broker with 40 years of experience, made the mistake of attempting to defend the foreclosure in court. The court was not sympathetic to her plight and the home was foreclosed. The home was worth over a million dollars.

When do you seek help? As soon as possible. The obvious waring signs are letters from the lender’s lawyers or a court papers. Even then it might be too late. There are so many programs available, others that are scams and still more that don’t appear unless you ask that you are placing yourself at risk if you try to do it yourself.

Remember that old adage, “Don’t try this at home. Let an experienced professional take care of it.”

“ConnecticutGene Melchionne is a bankruptcy lawyer covering the entire State of Connecticut. He can often be found on Google+ and Twitter, where he shares information about consumer protection issues and personal finance.

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