Stopping Foreclosure
You should definitely have an experienced foreclosure attorney review your loan documents as the lender may to see if there may be a defect in the documentation that gives you a defense to the foreclosure. In my experience as a bankruptcy attorney, I have reviewed countless foreclosure documents and believe most are defective.
Negotiate a Loan Modification
If you are behind in your mortgage and have received a notice of default, you need to take action. To begin with, you may want to get an opinion of value from a realtor and put the property on the market so you have evidence of the current market value. That will help in any negotiation about modifying your loan (see above.)
It is important to note that a new Idaho law requires your lenders to notify you of your right to apply for a loan modification prior to beginning foreclosure.
Use Chapter 13 to Cure the Default
Filing a Chapter 13 bankruptcy may also be an option. As explained above, you can cure your default over the term -36 to 60 months – of the Chapter 13 plan. You also may be able to eliminate a second mortgage (see discussion above.)
File a Lawsuit
You should definitely have an experienced foreclosure attorney review your loan documents as the lender may to see if there may be a defect in the documentation that gives you a defense to the foreclosure. In my experience as a bankruptcy attorney, I have reviewed countless foreclosure documents and believe most are defective.
Your loan was probably sold to investors. The problem is that most deeds of trust name MERS as beneficiary. MERS is a creation of the big banks to avoid having to record all of the transfers of your loan, as required by law. If the lender has not complied with Idaho law which governs the foreclosure process, you may be able to file a lawsuit and stop the foreclosure.
In any event, getting an attorney that handles both bankruptcy and foreclosure involved can make all the difference in the world in getting a lender to come to the table. Whatever you do, procrastinating will not solve the problem. Please contact us to see how we can help.