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Foreclosure FAQs

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A Resource When You Face Foreclosure

If you need a lawyer because your mortgage lender is trying to foreclose on your home, we know this is a nerve-wracking and complicated time. You have a lot of questions.

The Ohio foreclosure defense attorneys at Horenstein, Nicholson & Blumenthal want to be a resource to help you understand your rights so you can put foreclosure behind you and move on with your life.

To make your legal process as easy as possible, below we provide answers to common questions about foreclosure.
When you think of us, we want you to think “Helping me, that’s HNB.”

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Can I Stop A Foreclosure?

It’s possible. You could find an error by the mortgage company, a violation of federal law, or uncertainty about which financial institution actually owns your mortgage. Any of those would stop a foreclosure. You could also seek a loan modification.

A foreclosure attorney can help you understand these and other options available to you. But the process is complicated, so don’t trust any attorney who promises they can stop your foreclosure no matter your circumstances.

Does Bankruptcy Stop A Foreclosure?

The right kind of bankruptcy can stop a foreclosure. But bankruptcy also has serious tradeoffs. And other approaches could get you out of foreclosure without the added burdens of bankruptcy. You need to weigh this option extremely carefully. A foreclosure lawyer can help you do that.

How Can I Stop A Foreclosure Without Declaring Bankruptcy?

Before you declare bankruptcy, you can look at options like loan reinstatement, loan modification, filing a claim against a lender for breaking federal or state laws, uncovering errors by the mortgage servicer and more.

Do I Need A Foreclosure Attorney?

Foreclosure is a highly specific and complicated area of the law. While you’re not required to get a lawyer to deal with foreclosure, a lawyer can show you options you didn’t know about.

The foreclosure process is also stressful—an attorney can guide you through it.

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My House Is Worth Less Than My Loan. Will I Have To Pay The Difference In A Foreclosure?

One of the risks you face in a foreclosure is that you’ll be left paying for the amount of your loan that exceeds how much you could get for your house. But there are options, like a cash-for-keys arrangement, that could get the “deficiency” in your mortgage waived.

Why Did The Bank Return My Mortgage Payment?

If the bank has refused to accept your mortgage payment or returned it, they have likely deemed your mortgage is in default. The payment you sent doesn’t cover the total amount due—so they’re preparing to foreclose on your property. You should consult an attorney immediately. HNB attorneys can help you sort out your options and get information from the bank to help you understand what is happening and whether the bank made any accounting errors.

Why Did I Receive A Notice Of Default?

Many mortgages have a provision that requires the bank to give you written notice of the default before it can call the entire loan due. Typically, if you receive this notice, the bank is preparing to file for foreclosure.

What Is A Notice Of Acceleration?

This is another term for a notice of default. If you have received this notice, the bank is likely planning to foreclose on your home. You should take action immediately. Waiting until the foreclosure is filed could reduce your options to save your home.

How Long Must The Bank Give Me Before Filing Foreclosure?

Under federal regulations, the bank must wait until you are more than 120 days delinquent on your mortgage before starting a foreclosure in court. This 120-day period is designed to give you time to avoid foreclosure. However, the bank can still send pre-foreclosure notices during this time, and by the time you realize your mortgage is delinquent, you may be closer to foreclosure than you think.

If I Missed A Payment, Is The Bank Guaranteed A Successful Foreclosure?

No. Foreclosure is more complicated than that. The bank wants you to think it’s simple and straightforward, but it must follow numerous regulations to complete the foreclosure. The bank’s failure to adhere to even one rule could be enough to save your home. You have several options to stop the foreclosure—or at least give you a better financial future—including loan modifications, cash-for-keys agreements, and deed-in-lieu-of-foreclosure arrangements.

Should I miss payments in order to get a loan modification?

No, you don’t need to stop paying your mortgage to qualify for a loan modification. You only need to show you’re in danger of falling behind in your payments. Missing mortgage payments that you can otherwise afford just to get a loan modification can lead to some very serious negative consequences, including losing your home.

What happens if my mortgage servicer changes?

In most cases, when your mortgage loan is transferred to a new servicer, your current servicer and the new servicer must each notify you. A change in servicer sometimes signals that a foreclosure is coming. If you’re unsure whether you’re behind on payments—and your loan transfers to a new servicer—consider contacting an attorney to help you determine your risk of foreclosure.

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What happens if my mortgage servicer changes while I’m in the middle of applying for a loan modification?

nder federal guidelines, the old servicer is supposed to forward your documentation to the new servicer, but they don’t always follow these rules. If your loan moves while you’re in the middle of applying for a modification, stay on top of the application process and submit any paperwork requested by the new servicer right away. If you feel like you’re not being treated fairly, contact an attorney to see what options you have to get your application the attention it deserves.

What is a short sale?

In a short sale, the lender accepts less than the amount owed on the mortgage. This is a good strategy for borrowers willing to leave their home. It’s helpful to have an experienced foreclosure defense attorney protecting your rights as a realtor attempts to sell your house—because the lender may reject the terms of the short sale.

What is a deed in lieu of foreclosure?

A deed in lieu of foreclosure is a transaction where the homeowner voluntarily transfers the property title to the lender in exchange for a release from the mortgage obligation.

What is a loan modification?

A loan modification is a permanent restructuring of the mortgage designed to make the mortgage payment more affordable for the homeowner. This can be done by changing one or more of the loan terms, such as extending the repayment period or lowering the interest rate.

Get a Plan for Grappling with Foreclosure

An attorney for HNB can determine the legal status of your case, identify your needs, identify your options and create a foreclosure action plan for you.

We want to see you move past this crisis and on to better times.

Call HNB Now! 

Hear from HNB Clients:

Dean Williams
in Google Reviews

“They met all of my needs, suggested avenues of approach in my case that I hadn’t thought of. The lawyers that handled my case at different levels were fully knowledgeable of all aspects of my case. Highly recommend this firm for your legal needs.

Pam Preston
in Google Reviews

They treated me like family and did a wonderful job for me. I am so happy that I chose them.”