Bienes y Raices

Foreclosures and Loan Modifications

The Law Offices Of Carlos De Amo provides experienced legal counsel related to foreclosures, short sales, loan modifications and related financing disputes. Due to the changing Bienes de Raíces home and lending environments in many California communities, property owners may find themselves in situations such as the following:

* Income levels have changed in the household making loan payments no longer affordable.
* Current home market price has fallen below what is owed on the home loan.
* Financing or refinancing options are limited or unavailable.
* Loan adjustments have made the new monthly payments unaffordable.

It is important to talk to a reputable Bienes de Raíces legal professional about your individual situation to help determine the best strategy to maintain your home ownership or to relinquish ownership with the least amount of damage to your credit and/or the least amount of long-term impact.

Many people realize that they can no longer afford their payments and simply quit paying, allowing their home to go into foreclosure. There are several ways to avoid foreclosure including the following:

Short Sale

In the case of a short sale, the owner (working with his or her legal and Bienes de Raíces professionals) is given permission to sell the property at fair market value (in the case of that value being lower than the amount owed) with the bank forgiving the remainder of the loan. In other words, the lender agrees to consider the final amount paid as the loan pay-off, essentially forgiving the difference in the amount owed and the amount received. While this possibility may sound too good to be true, it makes a great deal of sense to the bank when the cost of foreclosure is weighed against the loss incurred by the bank on a short sale.

Loan Modification

In the case of a loan modification, a bank may agree to modify the original terms of the loan. Homeowners may be able to renegotiate the terms of the loan in one or multiple ways. Depending on individual household circumstances and/or the local Bienes de Raíces market, terms such as total length of the mortgage, interest rates, principal and more may be permanently or temporarily adjusted. A Bienes de Raíces attorney can advise you on this process and negotiate on your behalf directly with the lender.

If the short sale or loan modification is not an option, in some cases, homeowners may indeed find themselves on the path to foreclosure. One additional option to consider is the Deed in Lieu of Foreclosure.

Deed in Lieu of Foreclosure

If a short sale or loan modification is not an option, there is a possibility that a homeowner could request that the bank consider a deed in lieu of foreclosure. This is basically a transfer of title back to the bank from the homeowner. While it does affect the property owner's credit score, this option avoids some of the embarrassment and public proceedings of a formal foreclosure.

Foreclosure

Foreclosure is a last resort for property owners. With foreclosure, the homeowner abandons financial responsibility for the loan and ultimately allows the bank to reclaim the property. The first step in this foreclosure process is the Notice of Default. This occurs after the homeowner has stopped paying on the loan, usually after the third missed payment by the homeowner. After the Notice of Default, the homeowner has a right to remain in the home during the foreclosure process until a new property owner purchases the home.

The Law Offices of Carlos Del Amo, P.A. is prepared to analyze your home ownership and loan situation to determine the best option for your circumstances. After determining the appropriate course of action, Carlos Del Amo will work on your behalf with all necessary parties to negotiate your best resolution.

If you or someone you know in the greater South Florida area needs the assistance of an experienced lawyer, contact our office anytime, day or night, at 305-443-7005, or complete the contact form provided on this site to schedule your free initial consultation.