So the bank has started foreclosure case and you were handed the foreclosure paperwork by a process server. What do you need to do:

Set the clock

After the lawsuit is filed, you will receive a notice of the complaint along with a summons. The summons tells you when you are to appear in court. You should also answer the complaint within 20 days to avoid a default judgment. If you do not file an answer with the court within the appropriate amount of time, the lender or servicer will file a motion for a default judgment. A default judgment will mean the lender automatically wins their case and by not responding, you have forfeited your chance to defend yourself.

Reach out to an attorney

It is always recommend seeking advice from an attorney immediately. There are many requirements to protect your rights and a foreclosure defense attorney should be able to help. You may not know of the several defenses that are available to fight foreclosure, but a foreclosure defense lawyer will. Most people that are facing foreclosure are already in financial hardship and so, they do not think they can afford a foreclosure defense lawyer. However, it is important to find a lawyer that offers free consultations so you can determine if you have a good case, and learn more about their payment structures.

Start a loan modification application.

One of the most popular options for most homeowners will be seeking a loan modification. The idea would be to lengthen your loan term and pay off the missed amount at the end of the extended loan term, with additional mortgage payments. This may also result in new and more favorable interest rates. A loan modification allows homeowners to negotiate any of the terms of their loan and to secure terms that are more favorable for them. Unlike forbearance agreements or even deferred payments, loan modifications are more appropriate for homeowners who will deal with financial struggles for a longer period of time. A loan modification is also not a brand new mortgage, as a refinanced mortgage is.

There are many other options that may be available to you. Feel free to contact us now for a free consultation in order to discuss your options.