Dealing with mortgage debt is not easy for anyone. In most cases, you may feel like time is running out and you have few options. The Federal Trade Commission has been working to better educate and protect consumers when it comes to foreclosure prevention. It is important that you know your rights as a homeowner, in order to maximize your chances of obtaining the best outcome.
Written Notification— Your lender is required to provide you with written notification about an impending foreclosure. However, you may have only one month’s notice of the foreclosure. Non-judicial foreclosure states do not require court intervention in order to proceed with foreclosures, which can leave you with only 30 days to come up with a solution.
Mediation Hearing— Anytime your lender is taking legal action, you have the right to a mediation hearing. By requesting the hearing with your lender, you have the right to sit down and discuss your options with your lender. It is a good idea to be represented by a foreclosure lawyer anytime you are dealing with litigation or legal matters with a lender.
Negotiation— You have the right to negotiate with your lender to secure a mortgage debt resolution. Whether you are pursuing a loan modification, short sale, refinancing option or other solution, you do have the right to request these actions in lieu of a foreclosure. However, you may need to act fast if you have already received a foreclosure notification.
Alternative Solutions— If you are unable to secure a deal with your lender, you may pursue alternative actions. The government offers several federal programs to assist homeowners with their mortgage debts. The HAMP and HARP are two programs that can offer modifications or refinancing to homeowners that may not qualify under their lender’s standards.