How to Avoid Foreclosure

By Andrew J Thompson

If you are a homeowner facing default or other difficulties in meeting your mortgage obligation, here are some suggestions for avoiding foreclosure.   It’s likely if you’re reading this, that you have issues with your lender, and you’ve been treated unfairly somewhere in the process.   This article assumes you’ve fallen behind on your mortgage and you need help understanding your options.  The odds are good that you’re not getting that help from your lender.

  1. Don’t Rely on the Wrong People for Help:  If you’re counting on the one-to-one relationship you’ve initiated with the lender, you’re likely to be disappointed before long.  There is tremendous turnover in mortgage areas today, constant reassignment of personnel, and the loans themselves are often re-assigned to new lenders.  It can be even worse to rely on the help of out-of-state parties, or non-attorneys – especially if they act as if they can provide legal help and are not licensed to practice law.  Unfortunately, the thorny issues that arise when you have problems with a mortgage are unlikely to be solved without the intervention of a court at some point – it may take months or even years to resolve, but a court needs to be involved in the process.
  2. Stay in Control of the “Mitigation” Process: When you truly cannot meet your payment schedule, start asking questions of the lender, and be sure to ask the right questions.  If you leave the whole process up to them, no one will win – they do not have the vested interest in your home that you do.   The right questions begin with asking, “how do I know I’m dealing with the right party on this mortgage?”  You are likely to hear that they are, in fact, the right party to communicate with, but this isn’t always the case – the note could have been transferred numerous times, and they need to document their rights as a holder in due course of your note on the mortgage before you should deal directly with them.  This is probably a very good time to consult an attorney.  You should put the lender or its servicer in a position to show that it is, in fact, the “real party in interest” to the transaction, because it is likely that your note has been sold, and the mortgage may have been assigned to a different party.  This creates a problem for the lender – not you.  You may need an attorney to help you sort this out.
  3. Proper Use of a Loan Modification to Address Your Problems:  Loan modification arrangements are generally structured by the lenders to serve their needs, not yours.  When all is said and done, the bank will try to collect all of any arrearage, and as quickly as it can.  It may also shift the escrow payment schedule in a way that means you will end up paying a higher payment than what you originally owed.  This can be a no win situation, if the lender is unwilling to act in compromise, and unfortunately, there are actually only a few homeowners who come out ahead with a modification – it’s worth trying, but don’t count on it as a magic bullet.
  4. The Value of a Settlement Conference: A settlement conference is designed to put the homeowner on a more level playing field with the creditor who is foreclosing.  The goal is to keep the homeowner from losing the home unless it can be sold, and he/she/they can walk away with a situation that will enable them to find suitable housing afterward.  At a settlement conference, you are entitled to be represented by an attorney, and the creditor is required to account for the history on the loan, and to have a representative available with authority to settle the case.  The parties are encouraged to enter into a Foreclosure Prevention Agreement that meets the homeowner’s needs, as well as the creditor’s.
  5. Prepare with Every Valid Defense and Claim Against the Lender You May Have:  You need well versed, competent counsel to do this effectively.   There are issues relating to the transfer of the promissory note, assignment of your mortgage, the real party in interest on the mortgage, the fairness in their dealings with you, and more, that you should consider.
To schedule a free consultation concerning  your rights regarding your mortgage, call the Thompson Law Office at (317) 564-4976 today.

About Drew Thompson
Andrew Thompson is an attorney with 27 years of experience, now with Landmark Legal Services located in Indianapolis, Indiana. Andrew also founded Tinker Street Funding (Equity Crowdfunding platform) in 2015 and FLA-21 (Funding, Legal counsel and Advocacy) in 2016. Mr. Thompson ran for Congress in 2016 on a platform of fighting for the restoration of individual liberty and limited government. Mr. Thompson's practice involves helping entrepreneurs and small businesses acquire, sell, finance and establish the business platforms to succeed, and protecting those businesses, homeowners, parents and families in business, the courtroom, and their lives.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: