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Morrisville, PA Mortgage Foreclosure Defense Lawyer

When foreclosure is in your future, there are steps you can take to stop the process in its tracks.

Homeowners can stop mortgage foreclosure in Morrisville immediately by entering into bankruptcy. Negotiating with lenders to devise a plan to allow homeowners to retain their property might also stop foreclosure. Debtors should understand that negotiating with lenders is a challenging process that might result in additional issues. For example, loan modifications and forbearance plans might seem beneficial initially, only to lead to even more debt in the future. Because of this, homeowners should have our attorneys by their side when negotiating with lenders so that they also benefit from any plan put in place.

Call our Morrisville, PA mortgage foreclosure defense lawyers at (215) 701-6519 to have Young, Marr, Mallis & Associates analyze your case for free.

Solutions to Mortgage Foreclosure in Morrisville, PA

There are several solutions to mortgage foreclosure that might allow debtors in Morrisville to halt the process altogether. These include filing for bankruptcy and renegotiating with lenders.

Entering bankruptcy will stop your home from being foreclosed upon because of the automatic stay that will take effect as soon as you file. If a mortgage foreclosure is already in process, bankruptcy will halt an upcoming sheriff’s sale. In Morrisville, there is no right of redemption for debtors that have lost their homes because of mortgage default. This means that once your property is foreclosed upon and sold in a sheriff’s sale, there is no procedure in place for you to get it back, even if you are able to come up with the money. Either Chapter 7 or Chapter 13 bankruptcy can help put a stop to an upcoming mortgage foreclosure in Morrisville.

Our mortgage foreclosure defense lawyers might also be able to negotiate with your lenders to modify the loan you currently have. This might enable you to meet the new mortgage payments put in place so that you do not lose ownership of your property.

If going to court is necessary because a lender refuses to negotiate with a property owner, several defenses can be used to show why mortgage foreclosure is not an appropriate response to missed payments. Often, things do not get that far, as judges typically require lenders and homeowners to enter into mediation to resolve the issue out of court. Regardless, an investigation into a lender’s lending practices may be required to exhibit why a homeowner should be permitted to retain their property, despite defaulting on their mortgage in Morrisville.

What to Know About the Solutions to Mortgage Foreclosure in Morrisville, PA

When entering into negotiations or mediation with a lender, is important to understand that they are not necessarily on your side, and that the offers they might make could be detrimental to you.

Loan Modifications

Certain agreements, such as loan modifications, can greatly help homeowners facing mortgage foreclosure in Morrisville. That said, these solutions might come at an additional cost. For example, consider the pros and cons of a loan modification. When renegotiating the terms of your mortgage, a lender might allow you to lower your monthly payments in return for an extended mortgage. This means you will likely be on the hook for paying off your mortgage for longer than you initially anticipated. It is important to weigh the benefits of doing this and ensure that the new interest rate ascribed to your payments is not too high. If it is, you might face difficulties down the road if you miss future payments and debt begins to accumulate.

Forbearance Plans

Homeowners can face similar issues with forbearance plans. If a lender agrees to a forbearance plan with a debtor, they will allow the homeowner to suspend payments for a set period of time. So that they can also benefit, the lender will likely extend the payment period and increase the total payment amount. Forbearance plans can offer crucial relief for homeowners trying to get on their feet. However, if a homeowner agrees to a plan that only benefits their lender in the long run, it could result in another possible mortgage foreclosure in the future.

Repayment Plans

Often, lenders are open to at least a conversation about repayment plans. These arrangements between lenders and homeowners allow homeowners to repay missed payments according to a new schedule without the threat of mortgage foreclosure. Your lender might agree to give you extra time to repay debts and avoid unnecessary legal proceedings. While this often begins as a casual conversation, it is important to have our attorneys present. Otherwise, your lender might attempt to sell you on a repayment plan that does more harm than good in the long run. Although this could mean that future payments are not satisfied, a lender can get a return on their loan by selling your property in a sheriff’s sale.

Refinancing

It is not uncommon for homeowners to try to take out a second loan to satisfy the payment requirements of another loan. In this case, it would be to pay off a mortgage in an effort to stop foreclosure. This can get homeowners into deeper trouble, especially if they are now beholden to two loans they cannot pay off. Refinancing can be a suitable solution to mortgage foreclosure, provided it is done properly, which is why our attorneys should facilitate and review refinancing plans so that you are not taken advantage of when trying to save your home in Morrisville.

Bankruptcy

Unlike other solutions to mortgage foreclosure, bankruptcy is a legal process. Homeowners cannot be taken advantage of as easily, as the process is typically facilitated by a judge in court. Bankruptcy can allow you to become absolved of all debt as well, not just debt associated with your mortgage.