real estate agent in black coat discussing an ownership agreement to a couple inside the office

Photo by RODNAE Productions on <a href="" rel="nofollow"></a>

If you are considering filing for bankruptcy or undergoing foreclosure, then you know how stressful this can be. While it’s important to look into ways to avoid foreclosure, it can be tricky to do. Whether it’s a car, a house, or even your small business, there are some things that you can do to handle this in hopes of the situation going better for you. So, here are tips to help you handle a foreclosure of your assets.

Respond to the lender’s complaint

When you are in foreclosure, you should always take the time to respond to the lender’s complaint. This is your chance to assert defenses, show the court that you are not a victim of predatory lending, and find a loss mitigation strategy. So, what is this? The lender’s complaint is a legal document that outlines the reasons for foreclosing your home. You must respond to every claim made in the document. You must do so to avoid losing your case.

Usually, you will be asked to file an answer to the complaint within 20 to 30 days. You must admit to the allegations made in the complaint in a numbered paragraph and deny them in a numbered paragraph. You can also raise affirmative or negative defenses. If you can prove one of the claims, you can get the suit thrown out. You will also be notified of the first court hearing. This can be anywhere from two to 36 weeks, depending on the state in which you live. If you do not respond promptly, your lender will proceed with the sale.

Seek Mediation

Mediation is a method for handling a foreclosure that can help you get through the process. It gives you and your lender a chance to discuss your options and make a fair decision for both parties. Before scheduling your first mediation, you must complete a Request for Mediation form and a Response to the Complaint form. The information you provide will help your mediator prepare a report. It’s important to look for a Foreclosure Lawyer as they can help you with this process.

Deed in lieu of foreclosure

Deed in lieu of foreclosure is a great way to get out of a sticky situation without the hassle of going through the courts. Although not without its pitfalls, the process can be quick and painless. In fact, many lenders are willing to work with you to avert the worst of a possible foreclosure. The process involves a lender acquiring ownership of your home in exchange for you settling a debt. The ensuing negotiation entails an exchange of funds, a hefty sum. It’s a win-win situation for both parties. Lenders will save a ton of money on foreclosure fees, and you can reclaim your prized possession.

Of course, you’ll want to ensure you’ve done your research first. In short, a deed in lieu of foreclosure is the way to go if you’re in the market for a new home or to avoid foreclosure altogether. The process can be a bit confusing, but you’ll be in good hands with a competent mortgage broker.

Image credit

Consider reinstatement

Homeowners behind their mortgages can reinstate their loans if they can afford to make up for missed payments. This process can help save the home from foreclosure. However, the homeowner should be aware of their rights. They may need to pay attorney fees and recording fees and should be prepared to pay for a home inspection.

The first step is to contact the lender. They should give you a reinstatement quote in writing. You must pay the full quote and any late fees. The reinstatement period varies from state to state. Some states allow up to 90 days after the lender records a default. Other states have a shorter reinstatement period, usually five business days before the sale.