What is a mortgage foreclosure?
A mortgage foreclosure is a lawsuit by a bank or mortgage company (mortgagor) to repossess a home after the homeowner (mortgagee) has stopped making payments and is in default.
Can a money judgment be entered against me in a foreclosure?
Yes, the mortgagor can ask the court to enter a judgment for money damages after the foreclosure process is finished and the house has been sold at a foreclosure sale.
What is the process for a foreclosure?
The mortgagor files its lawsuit and obtains service on the mortgagee. The mortgagee has 30 days to file a response. If no response is filed, the mortgagor obtains a default and proceeds to final judgment. At the hearing on the final judgment, the court will set a time, usually 90 days from the hearing for the house to be sold at auction. The mortgagor has the option at the sale to buy the house. The Mortgagee then has about 24 hours to move out. If there is a tenant in the property, under Federal Law, that tenant has 90 days to move out.
What are some of the alternatives to foreclosure?
Deed in Lieu of Foreclosure- this is where the Mortgagee conveys the house back to the Mortgagor by a deed. Usually this is for no deficiency judgment. It will not work if there is a second mortgage.
Loan Modification-this is where the Mortagor and Mortgagee agree to modify the loan to an amount the Mortgagee can pay.
Short Sale-this is where the Mortgagee sells the house to a third party (not a relative) for an amount less than the balance of the Mortgage.
Can I get a free house?
There are some entities out there that are trying to sell the idea that if the mortgage company has “lost” the note, the loan is not enforceable. This is generally not true and the court allows the reestablishment of lost notes to prove a loan exists.
What can you do for me?
We can delay the foreclosure process, sometimes for years. Also we can through the court process force the mortgage company to negotiate with you to try and work out a solution that allows you to keep your home. Normally this is done through court sponsored mediation.
How much does this cost?
We charge one month’s mortgage payment initially and then $500.00 per month while the case is pending.
Should I file bankruptcy?
If we decide that bankruptcy is the best option, we can do that for you also.