More than 250,000 American homeowners go through the foreclosure process each year. Some save their homes by working with Ohio’s highly rated foreclosure lawyer. Others simply can’t keep up with their mortgage payments and are forced to part ways with their houses..  Sometimes, people give up and let the bank kick them out, not knowing that they may have options to save their home.  

If you’re one of the 250,000+ Americans facing foreclosure, you may feel like you’re out of options. But can you negotiate a resolution to your foreclosure? In many cases, the answer is yes. Working with an experienced attorney can help you explore your options and work toward avoiding foreclosure. 

Loan Options To Negotiate a Resolution to Foreclosure

Your lender may allow you and your attorney to propose a “workout,” which is a compromise that either temporarily or permanently modifies the terms of your mortgage. The goal of the workout would be to modify the terms to bring the loan current and to let you resume making payments on your mortgage.  Many clients claim that they tried to pay the bank, but they wouldn’t take their payments.  That is because when you default on a mortgage, the lender will require you to make a payment large enough to bring the loan current.  Most people facing foreclosure cannot come up with a lump sum of money that large, but a loan modification can resolve that problem. 

Creating a workout with your lender is the main method through which you can negotiate a resolution to your foreclosure. Your workout may include any of these changes:

• “Fix” your interest rate: If you have an adjustable-rate mortgage and your rate is about to change, you can ask your lender to “fix” the rate instead of increasing it. 
• Defer payments: Your lender may agree to defer a certain number of loan payments to the end of your loan and give you more time to come up with the money. 
• Add your past due payments to your loan balance: You and your attorney can ask the lender to add your past due payments as a lump sum to your total loan balance, allowing you to split them up over the remainder of the loan. 
• Modify the interest rate: Occasionally, a lender will agree to modify the mortgage rate entirely, reducing the monthly payment in turn. 
• Grant a temporary forbearance: Your lender may grant you a temporary forbearance where you can stop making loan payments for a period of up to six months. 
• Debt forgiveness: Although very rare, in some circumstances a lender will even waive a portion of the past due balance or offer a principal reduction.  

If you want to negotiate a workout with your lender, you’ll likely need to fill out forms from your lender to initiate the process.   Your lender will want you to provide financial documents, such as your tax returns and pay stubs, to verify that you are financially able  to meet the modified  loan terms.  You must follow the lender’s procedures and create a good paper trial to make sure they are compliant with the Real Estate Settlement and Procedures Act which is something an attorney can navigate on the borrower’s behalf.  

Your attorney can assist you with this process and increase your chances of successfully negotiating your foreclosure. They can also present alternative methods to stop foreclosure, such as involving the government. 

Reach Out to Us To Avoid Losing Your Home to a Foreclosure Sale

Since the answer to the question, “Can you negotiate a resolution to my foreclosure?”, is often YES, you don’t have much to lose by applying for a loan modification with your lender. Call on an excellent foreclosure lawyer to lend a hand.

Cozmyk Law Offices can help you navigate your way through the foreclosure process. You might be able to save your home by working out a loan modification with your lender or using bankruptcy exemptions to your advantage. Contact us at 877-570-4440 to begin.