A reputable real estate attorney can help you with issues related to foreclosure. The attorney can advise you about the foreclosure process in your state and tell you what your options are. However, there may be little the attorney can do to actually stop the foreclosure if you have defaulted on the loan and the mortgage company has followed state laws during the foreclosure proceedings.
Foreclosure Rescue Specialists
The Federal Trade Commission reports that you should avoid so-called "foreclosure rescue firms" that may be headed by lawyers or claim to have lawyers on staff. Although some of the firms are reputable, law enforcement officials claim that many are not. Some homeowners behind on their mortgage turn to the foreclosure rescue firms after responding to their advertisements on TV and radio. Some of the firms claim they can stop the foreclosure process but require a large up-front payment from the homeowner before taking any action. The FTC reports that many of the agencies simply pocket the money and fail to even contact the lender.
Approved Housing Counseling
The Federal Trade Commission recommends contacting a government-approved housing counselor -- even before seeking the services of any lawyer. Housing counselors certified by the U.S. Department of Housing and Urban Development are experts in foreclosure avoidance, and could stop your foreclosure for free by contacting the lender and negotiating a workout plan. An approved counselor, such as those with Consumer Credit Counseling Service, knows every solution possible for avoiding foreclosure and can contact your lender with you on the phone.
Legal Aid
Contact Legal Aid or a similar organization in your community if you would rather have help from an attorney, Charitable organizations, such as the Urban League or Salvation Army, can provide contact information for a Legal Aid chapter in your town. You may qualify for free assistance if you meet income limits. Charitable organizations can also offer other suggestions for free legal help. The organization may know about private attorneys who aren't affiliated with Legal Aid but offer to donate their services for foreclosure cases. Or the charity may know of help available at a local law school.
Voluntary Foreclosures
Legal advice is a must if you are considering a voluntary foreclosure, also known as a "strategic default." Some people simply walk away from their home because they no longer want it. Although they have the ability to keep paying the mortgage, they may be dissatisfied because the home has dropped dramatically in value because of a housing slump and is now worth far less than the purchase price. A reputable real estate attorney can warn you about the consequences of walking away from a mortgage, including a possible lawsuit by the lender and severe damage to your credit.
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