What's A Homeowner to Do When Foreclosure Threatens?
Foreclosure is a two-fold problem. Most foreclosures are caused by a temporary or long term financial problem
which is then compounded into a financial and legal problem. Solving one and ignoring the other won't help.
You have to address and resolve each problem to successfully avoid foreclosure. You must get your financial house in
order.
If your lender forecloses, you have to make sure your lender has the legal right to foreclose.
You have a right to demand to see certain documents in your loan file. If the lender can't produce certain documents,
it may not YET have the right to foreclosure. TILA Regulation Z is Federal law with teeth requiring the lender to disclose
the exact cost of credit... and give you the right to cancel the loan.
Predatory loans are
made without regard to the borrower's ability to repay, loaded with excessive front end fees, or exploitative terms.
If your loan's origination process or its terms were/are predatory, or if the loan was made in violation to state or federal
lending law, you may be able to compel your lender to restructure your loan based upon a combination of your home's current,
fair market value, and your income.
Contact
your lender and then make application
for relief. It won't be easy, and nobody will be offering relief unless you ask for it and make formal application.
You have to know what to ask for. Workouts will be like a game of musical chairs. There will be ten deserving
homeowners in need of relief for every workout available. Don't enter into any agreement with your lender that requires
you to give up your legal rights. If you can't afford an attorney, contact Legal Services. (and read Fight
Foreclosure!)
