Examining the options when facing foreclosure

Lisette Livingston |

With foreclosures skyrocketing, you should know that in the event you have been served with foreclosure papers, you have several legal rights that may help you work out a settlement with the lender. As a first step, its best to contact an attorney who is experienced in foreclosure cases

to help you navigate through the process. Although foreclosure can be a horrible experience,

you do have some options:

> Option 1:

Your first option includes the right to reinstatement or to catch up on your missed payments,

which must be completed within 90 days from the date of the foreclosure action. In addition, you must also pay the mortgage companys attorney fees and court costs. If you reinstate the mortgage, the lawsuit is ended, and your mortgage remains in effect. Those who choose this action should be aware that it can only be used once every five years.

> Option 2:

If option one doesnt work, you can also file for bankruptcy. This automatically stops the foreclosure while the bankruptcy case proceeds.

> Option 3:

With option 3, there is the right of redemption or paying off the entire loan. You have seven months from the date you are served with the foreclosure notice or within three months from the date of entry of a foreclosure judgment. This can be a tough option for someone who is already financially strapped. The homeowner must pay off not just the entire balance but all the interest owed, as well as attorneys fees and court costs. Even after a foreclosure has been filed against you, you can continue to live in your home without further payments until the period of redemption expires. After that, you may stay in the house until 30 days after the confirmation of the judicial sale if you pay a fair amount for rent.

> Option 4:

Sometimes, the new home owner will agree to lease the home back to its former owner. Its

certainly an option that would allow you and your family to remain in the home.

The government also offers a number of programs that will help you stave off foreclosure. Visit the U.S. Department of Housing and Urban Development at www.hud.gov or contact

your attorney for additional information.

The above information is provided as a public service and is not intended to serve as legal advice. The law is always changing. For help with a particular situation, pleaseconsult your lawyer.

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