Allentown Mortgage Foreclosure Defense Lawyer
If you are a homeowner, there are few things as distressful as having a foreclosure notice taped to your front door. You may feel embarrassed and unsure about what to do with the financial pressure you and your family now face. We are aware of the emotional trauma associated with the thought of losing your home, and our attorneys are dedicated to helping homeowners in your situation find alternative options.
At Young, Marr & Associates, we have knowledgeable foreclosure lawyers with over two decades of experience assisting homeowners facing overwhelming financial hardship. Your initial consultation is confidential and free of charge. We handle foreclosure cases in Allentown and the surrounding area. Call our Allentown mortgage foreclosure defense lawyers at (215) 701-6519 to schedule a free consultation.
Using Bankruptcy to Stop a Foreclosure in Allentown
Often, homeowners do not have a strong defense to a mortgage foreclosure. People fall behind on their mortgage payments for a variety of reasons, ranging from loss of a job to an extended illness. Once the foreclosure process begins, lenders will not accept anything less than repayment of the full delinquency. If a homeowner has the funds to pay their regular monthly mortgage payment, but cannot pay the delinquency, filing for Chapter 13 bankruptcy could be the best option to stop the foreclosure and save their home.
Chapter 13 bankruptcy will stop all foreclosure proceedings, including a scheduled sheriff sale. The process is also administrative not adversarial, so mortgage lenders have limited ability to object to a bankruptcy or have their lawyers bury your case.
As part of your bankruptcy filing, our Allentown foreclosure defense attorneys will propose a bankruptcy plan that lists the amount you owe to your mortgage company and the amount you will pay each month to cure the arrears. The Bankruptcy Code allows a homeowner five years to pay the arrears.
Your lender will file a claim in your case that will provide documentary evidence, including a payment history of the amount you owe. We will thoroughly review the mortgage company’s documents to determine if the amount listed is accurate and either amend your plan to reflect the correct amount or file an objection. Once the bankruptcy court approves the plan, both the homeowner and the lender are bound by its terms.
Defending Against Foreclosure after Missed Mortgage Payments on Your Allentown Home
Life rarely goes as planned, and a financial setback – no matter how small – can have rippling effects on your entire life. An illness or loss of a job could have a devastating impact on your ability to pay your monthly expenses. Because you need to pay for necessities, that monthly mortgage payment gets ignored, and soon you are four or five months behind. Here is a timeline of how foreclosure cases usually start:
- Within 36 days of missing your first mortgage payment, your lender must call you to review possible loss mitigation options.
- The mortgage company will follow up phone calls with a letter detailing the options available to you within 45 days of your default.
- If your lender intends to foreclose on your home and 90 days have passed since you missed your mortgage payment, you will receive an official Act 91 Notice.
- Thirty days after receiving the Act 91 Notice, should you fail to take any action, your lender could file a complaint in foreclosure against you in civil court.
If you want to maintain possession of your home, you need to be proactive once you start receiving any letters or notices from your mortgage company. The experienced attorneys at Young, Marr & Associates understand the complexities of foreclosure law in Allentown and can help you find a solution.
Allentown Mortgage Foreclosure Diversion Program
Allentown participates in a mortgage foreclosure diversion program to help homeowners facing the threat of losing their home. The Court of Common Pleas will issue a case management order scheduling a mediation conference after your lender files a complaint in foreclosure against you. The conference is designed to allow homeowners and a representative from the mortgage company to meet to find an alternative solution to foreclosure. An experienced Allentown foreclosure attorney from Young, Marr & Associates can represent you at the conference, working on your behalf for a beneficial resolution.
Foreclosure proceedings will be suspended pending a court order if you participate in a mediation program. Nonetheless, depending on the facts of your case, our Allentown attorneys might recommend filing an answer to the mortgage complaint to preserve your rights.
Alternative Solutions to Foreclosures in Allentown
During the mediation process, we will assist you in negotiating with your lender’s representative. Our commitment is to finding you a beneficial alternative to foreclosure, ensuring you thoroughly understand all of your options.
If your financial situation requires a long-term solution, we could work towards a loan modification. Loan modification restructures your existing loan. Your lender could agree to a lower interest rate, additional years on the term of your mortgage, or forgiving a portion of the delinquency. Ideally, a loan modification will put you in a position to be able to afford your monthly payments while ensuring your lender is paid regularly. The application process is cumbersome and requires you to submit many documents. Our attorneys understand the process necessary to have a loan modification approved.
If your financial setback is only temporary, a forbearance might be a better option. Your lender could agree to suspend your payments or accept a substantially lower monthly mortgage payment for a short time. After the forbearance period, you would be required to pay a higher monthly payment over several months to pay back the deficiency. To qualify forbearance, you will be required to provide evidence of the short-term problem as well as proof that you will be able to afford the increased payment amount.
There are also times when your lender could have made an error in applying your payments to your account or may have acted in an unscrupulous manner requiring a vigorous defense against the foreclosure. Our seasoned Allentown mortgage foreclosure defense attorneys will carefully review the foreclosure complaint, along with all supporting documentation and payment histories, to determine if you have a valid defense or if an alternative to foreclosure – like bankruptcy – is available.
Call Our Allentown Mortgage Foreclosure Defense Lawyer for a Free Consultation
Losing your house to a sheriff sale is a nightmare. Having those memories torn from you as you are required to vacate the property you called home is heartbreaking. At Young, Marr & Associates, our compassionate Allentown mortgage foreclosure attorneys understand the stress and pressure that accompany foreclosure. We will diligently work with you to find solutions to avoid losing your home. Call us at (215) 701-6519 to schedule a free consultation.