Follow along to find out what you should do if your home is at risk of being foreclosed or repossessed and how a proficient Rockland County foreclosure defense attorney at The Law Offices of Allen A. Kolber, Esq., can prevent this from happening.
Under what circumstances will my home get foreclosed or repossessed?
It is important that you understand that if you just miss one mortgage payment, you will likely not lose your home to foreclosure or repossession. This is especially the case if you never miss a payment again. This is because the bank does not necessarily want to foreclose or repossess your home. Rather, their greater goal is to earn money and collect interest, not real estate.
What happens when my home gets foreclosed or repossessed?
A creditor may take legal action against you. That is, they may garnish your wages or place a lien on your property. This is their attempt to have you pay off your debts.
Ultimately, a creditor cannot directly repossess your home, but they have the legal authority to commence its foreclosure by indirectly repossessing your assets. The following are examples of assets a creditor is entitled to repossess:
- Your vehicle(s), so long as you have a loan tied to it.
- Rent-to-own items (i.e., home appliances, furniture, electronics, expensive personal items, etc), so long as you have not purchased them yet.
- Certain other properties that can be kept as collateral.
What can I do to prevent my home from being foreclosed or repossessed?
First, you may want to undergo a loan modification. With this, you will work with a lender to best match your mortgage payments to your current financial situation. This is not a break on your mortgage. Rather, this is a means of adjusting your present loan, so the bank will only allow you to undergo this if you prove that you have enough income to meet your mortgage.
Or, you may want to undergo the Loss Mitigation Program of the Bankruptcy Court. With this, you will be protected from the bank’s attempts to foreclose or sell your home. You will similarly apply for a loan modification through this, so long as you fall under the eligibility that is mentioned above.
Most importantly, you must take any action possible to prevent your home from being foreclosed or repossessed. This is because if your lender does not see any action, then they may expedite the process to be complete within the year. To get started as soon as possible, you must retain the services of one of our talented Rockland County attorneys. Pick up the phone and give our firm a call today.