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Stop Foreclosure in Dallas, Save your Home, Free Consultation With Foreclosure Attorney

AVOID FORECLOSURE

People with financial difficulties who own homes at some point in time may not be able to make their monthly mortgage payments.  This, of course, may occur for any number of reasons including bad financial decisions, loss of employment, and / or unforeseen medical conditions resulting in astronomical bills.  Whatever the reason may be lenders have no alternative but to call in the loan after a certain number of late or missed payments.  The more equity in your home the more beneficial it is to the lender to foreclose.  While foreclosure makes the lender whole, it may be a financial disaster for you.  Your home is gone, your equity is gone, your credit is negatively affected, and you incur the costs of moving.  You should always try to avoid foreclosure even if it means selling your house.

There are ways to avoid foreclosure like contacting your lender as soon as you realize you have a problem.  Lenders may be able to assist you in lowering your payments.  Be sure to prioritize your spending and you may be able to reduce your monthly expenditures – by putting a membership on hold.  If you are behind on your home mortgage filing for bankruptcy may allow you to keep your home.

Should I Stay Or Should I Go?

In the early 1980s the British punk band The Clash asked a question many homeowners are struggling with today:

Should I stay or should I go now?

If I go there will be trouble

And if I stay it will be double

So you gotta let me know

Should I stay or should I go?

Walking away from a home that is worth less than the mortgage debt is not simply a financial decision, it is a moral dilemma. University of Arizona associate professor of law Brent T. White argues in a paper entitled “Underwater and Not Walking Away: Shame, Fear and the Social Management of the Housing Crisis” that Americans who own homes that have depreciated far below the amount owed would be better off walking away and renting. In this paper recently featured by the Wall Street Journal Online, Mr. White says homeowners are kept in these “upside-down” homes by feelings of fear, shame, and guilt that are encouraged by politicians and bankers.

No one wants to walk away from a family home, but one should consider the financial consequences of staying. White gives the example of homeowners “Sam and Chris” who purchased a home for $585K 2006. Their mortgage payment is $4,300/mo. White explains:

Unfortunately for Sam and Chris, the housing market began to collapse in 2007. Though they still owe about $560,000 on their home, it is now only worth $187,000. A similar house around the corner from Sam and Chris recently listed for $179,000, which, with a modest 5% down, would translate to a total monthly payment of less than $1200 per month – as compared to the $4300 that they currently pay. They could rent a similar house in the neighborhood for about $1000.

Assuming they intend to stay in their home ten years, Sam and Chris would save approximately $340,000 by walking away, including a monthly savings of at least $1700 on rent verses mortgage payments, even after factoring in the mortgage interest tax reduction. The financial gain for Sam and Chris from walking away would be even more substantial if they took their monthly savings and put it into an investment account. If they stay in their home on the other hand, it will take Sam and Chris over 60 years just to recover their equity[.]

Walking away from a financial obligation can be a gut-wrenching decision. If you are struggling with an upside-down home and indecision’s bugging you, speak with an experienced bankruptcy attorney. Only a licensed attorney can explain the legal consequences of walking away from a home.

How Filing Bankruptcy Can Save Your Home

While many homeowners in Arlington and Dallas are feeling the foreclosure noose around their necks, there are a few things they can do to avoid hanging themselves. First, don’t live in denial! The reality is if a homeowner does nothing to protect their home, they will lose it sooner than later. If you have attempted to re-negotiate your mortgage without success, it’s vital that you use whatever rights you have under the law to protect your most valuable asset--your home! Second, use your right to file for bankruptcy.

Bankruptcy laws were created to protect consumers. When you file for bankruptcy, an automatic stay is put in place to freeze all actions by your creditors. This includes the financial institution that gave you your home loan. What this mean for you is that the lender cannot foreclose on your home. It also gives you time to pay any arrears you owe the lender. There are also other advantages to filing for bankruptcy, such as removal of a second mortgage that may greatly reduce future mortgage payments. To learn more about what options you may have, you should discuss your current situation with an attorney that specifically handles bankruptcy cases. This will help ensure you get the expert representation to help you save your home.

Avoid Foreclosure Scams & Save Your Home

Homeowners in Dallas need to be on alert of people and companies with fraudulent foreclosure schemes and scams to deprive them of their home. Some of the schemes include offers to buy your home and let you rent while in order to help you buy back your home. Other similar scams involve an offer to help you financially in exchange to be put on the home’s title. Do not fall for any of these quick fix solutions to your financial problems because you will end up losing your home. In these scenarios, the homeowner is eventually kicked out of their own home! Don’t become one of their victims!

While some of these scammers are in jail, there are plenty still around ready to take their place. The following are some simple steps you can take to protect yourself:

•Avoid contact with people who make unsolicited calls or visits to your home offering to help you.
•Do not let precious time go by, as time is not on your side in a foreclosure proceeding.
•Do not sign anything without speaking to an attorney.

What are my alternatives to Bankruptcy to Stop a Foreclosure?

There are a few effective ways to stop or postpone a foreclosure or sale date on your home.  Your first step should be to contact your Mortgage Company directly as soon as you know you are behind or are about to miss a payment and speak to the Loss Mitigation department. Every mortgage company has Loss Mitigation department and they are there to help you in times of need (not that they always do help).  Let them know your current situation (such as loss of job, decrease in income, medical conditions or emergency situations) and ask them for your options.

The Loss Mitigation department of your Mortgage Company should be able to provide you a forbearance option or a modification option. BEWARE, some Mortgage Companies use their Loss Mitigation department to drag their feet until they sell your house.  Don’t let this happen to you!

Fort Worth Homeowners: You Can Avoid Foreclosures!

Despite some of the reports on the Internet that foreclosures in the Fort Worth area are declining, the rates are still considerably higher than they were last year. There can be many reasons why there is a lull in foreclosures. It could mean that the mortgage companies are overwhelmed with paperwork and are forced to sit on homes that are in pending foreclosures. This of course does not mean that they will not foreclose, but rather that they will eventually get around to it.

 
If you are facing foreclosure and cannot negotiate a reasonable repayment plan with your mortgage lender, it may be wise to consider filing for a Chapter 13 bankruptcy. When you file for bankruptcy, you will stop the sale of your home and have the opportunity to repay the arrears. Additionally, you may even be able to exclude a second mortgage that in turn can save you thousands in mortgage payments.
 
If you are in danger of losing your home, filing for bankruptcy can be a very powerful solution for many homeowners as it can give you the time and resources to renegotiate your mortgage with your lender while saving your home

How To Apply For A Modification Of My Mortgage
 
Currently mortgage modification is a very hot topic. It is being seen as an alternative to foreclosure or bankruptcy. Briefly, a loan modification is a process by which the bank modifies the terms of a borrower’s mortgage to lower the monthly payment. The bank can change a person’s interest rate, reduce the principal balance of the overall amount owed and extend the amount of time a person has to pay off the loan (up to 40-50 years). These are some of the ways in which the lender reduces a borrower’s monthly payment to an amount in which they can afford as opposed to foreclosing. Sounds simple enough but as many people find out, dealing with a mortgage servicer takes much time and patience. Most of the time, you will have a hard time reaching them or they will not return your call.

Without legal representation you are basically at the mercy of the mortgage holder. If you are having trouble with your mortgage, an attorney skilled in loan modifications can help:
•Lower your interest rate to a payment you can afford•Stop foreclosure •Obtain a principal forbearance
•Change the terms of an option ARM mortgage

Fears | Nachawati has law offices throughout Texas, including Dallas, Ft. Worth, Houston, Austin and San Antonio. Our Dallas and Ft. Worth offices serve Plano, Arlington, Carrolton, Cleburne, Irving, Grand Prairie, Denton, Frisco, McKinney, Garland, Mesquite, Richardson, Rowlett, Rockwall, Greenville, Terrell, Waxahachie, De Soto, Duncanville, Cedar Hill, Everman, Crowley, Mansfield, Haltom City, Granbury, North Richland Hills, Flower Mound, Bedford, Hurst, Euless, University Park, Highland Park, and elsewhere in Dallas County, Tarrant County, Collin County, Johnson County, Kaufman County, Navarro County, Ellis County, Rockwall County, Denton County, and Hunt County.