If you are facing a mortgage foreclosure, the time to take action is now. Fortunately for the homeowner in Wisconsin, there are several methods by which it is possible to defend a mortgage foreclosure.
1
Avoid Mortgage Scams
You may be contacted by people who will tell you that they can save your house. Be very careful about these plans, as most are scams and frauds. Avoid them.
2
Question - Is It Worth Saving?
The first consideration is whether it is worth the effort to save the home? Is the home worth more than what is owed? If not, it may not make sense to take action. Can you make the mortgage payments and pay the real estate taxes? If you can’t, it may not make sense to invest time and money in defending the foreclosure.
3
Consult With An Experienced Foreclosure Defense Attorney
Once you have decided to investigate the possibility of saving your home, the absolute first action to take is to consult an experienced mortgage defense attorney to consider your options. Gather up your loan documents, along with your payment history and all correspondence with the lender or its attorney, and take it to the attorney. The attorney can review your mortgage documents to see if the Lender complied with all applicable laws when the loan was made. The attorney can also advise you on the foreclosure process.
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Choose To Pursue One Or More Options
No. 1 – Negotiate With Your Lender - While this is almost always a burdensome task, if you are successful, it is oftentimes the best alternative.
No. 2 – Litigate - Have your attorney review your loan packages for possible Predatory Lending, Truth in Lending Act, or other claims and for possible defenses.
No. 3 – Find a White Knight - Maybe you have a friend or relative who is willing and able to purchase your home and rent it back to you until you can finance a repurchase.
No. 4 – Short Sale - In a short sale, the property is sold for less than what is owed to the lender. Make sure the lender forgives that deficiency.
No. 5 – File a Bankruptcy - Filing a Chapter 7 will only delay the foreclosure, but you will discharge any deficiency. A Chapter 13 will allow you to force a reinstatement of the mortgage by catching up the payments over time and perhaps litigate claims against your lender.
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Attorneys Fees
Expect to pay reasonable attorney fees if you hire a lawyer. Attorneys' fees vary by the attorney’s experience and may differ depending on your location in the state. Discuss fees up front and if you cannot afford the proposed fee arrangement, tell the attorney what you can afford. It may be possible to come to an agreement that works for all.
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