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Loan Modification vs. Foreclosure – A Dangerous Waiting Game By Omar J. Arcia, Esq. Foreclosure Defense and Consumer Bankruptcy Protection Attorney
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ost homeowners that are in foreclosure, or even at risk of
foreclosure, attempt to solve their mortgage crisis through self-help. They will submit one loan modification application after another, numerous sets of the supporting documents, and updated financial information in hopes that their lender will respond with a positive result. This process, however, may take months or even years if you choose to do it on your own. Most lenders may not stop the foreclosure process or even a judicial sale of your home just because a loan modification application is under review. In fact, the longer the modification review process takes, the more likely you will be declined, and lose your home through foreclosure. Here are three keys to stop foreclosure proceedings so that you can obtain a loan modification before losing your home. The first key is to consult with professionals that are knowledgeable not only about the loan modification process, but also about the foreclosure process. The Arcia Law Firm has an experienced in-house loss mitigation department with full time loan negotiators, and over 17 years of experience defending foreclosure matters. We are familiar with the valid legal defenses to a foreclosure case in Florida, and also how to properly and legally cancel foreclosure sales.
The longer the modification review process takes, the more likely you will be declined and lose your home through foreclosure. Secondly, the best defense is usually a good offense. As explained in our previous articles, whenever it is appropriate, we will present a counterclaim against lenders within a foreclosure case. This counterclaim usually involves violations of Federal or State laws committed by the original lender that may be attributable to the current lender. Through a valid counterclaim, you may even be entitled to relief from errors committed by your current lender while servicing your loan, such as escrow errors, misapplied or unapplied funds, and overcharges. Placing lenders on the defensive usually slows down the foreclosure process, and provides much needed motivation for lenders to negotiate a loan modification under more reasonable terms. Thirdly, a bankruptcy filing under Chapter 13 not only stops the foreclosure proceedings, but actually provides homeowners with an opportunity for a “second look” at their loan modification application under the all new mediation program available only in South Florida bankruptcy courts. You will be entitled to participate in this program even if your loan modification application has been previously declined. The Arcia Law Firm has an established bankruptcy department with more than 12 years of experience that works alongside its loan negotiators to ensure that a viable loan modification plan is submitted with every bankruptcy petition. Under a Chapter 13 bankruptcy, you may also be able to eliminate second mortgages, homeowner’s association and IRS liens, pay off investment properties in five years or less at their current market value, and wipe out credit card and medical debt. In short, a foreclosure is a serious legal matter that can lead to the loss of your home, and a significant money judgment against you if not properly handled by legal professionals. More detailed explanations of different options available to homeowners in foreclosure, at risk of foreclosure, or considering bankruptcy are discussed in a new consumer-friendly DVD developed by the Arcia Law Firm entitled “Fight For Your Home,” available for purchase on our website. If you mention that you heard about the DVD through this magazine you will receive a FREE copy during the appointment to discuss your case in detail with a member of our qualified legal team. If you are struggling to make your monthly mortgage payments, or if you just received a foreclosure summons, contact the Arcia Law Firm today at 954-437-9066 to schedule a free consultation, or visit www.arcialawfirm.com for more information.
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