Those coping with financial restraints and hardship may face home foreclosure. If you neglect your mortgage payments, your lender can legally repossess your home, forcing you to move out. Before you are evicted from your home, you may want to learn some essential real estate law information.

4 Real Estate Law FAQs About Foreclosure

1. Are There Alternatives to Foreclosure?

There are several alternatives to the foreclosure process, including special forbearance, which would allow your lender to arrange a repayment plan that suits your unique financial situation. You may also wish to pursue mortgage modification, a partial claim, or a pre-foreclosure sale.

2. Can Bankruptcy Prevent Foreclosure?  

Bankruptcy may delay foreclosure, but it can’t prevent it forever. If you file for bankruptcy, the court will file an automatic stay, which will prevent creditors from pursuing collection or foreclosure.

If you already have a pending foreclosure sale when you file for bankruptcy, the court will delay your sale in the meantime. However, the lender can still obtain permission from the court to proceed after a couple months.

3. What are the Consequences of Foreclosure?

In addition to being evicted from your home, you will also lose any equity you established. You will suffer severe damage to your credit score, which can impact housing, credit, and employment opportunities. You also may lose relocation assistance, leasing opportunities, and your ability to receive a Fannie Mae mortgage for at least 7 years.

4. What Should Those Facing Foreclosure Do First?

If you’re at risk of eviction, it’s important to seek legal counsel as soon as possible. Buyers may attempt to scam you during this vulnerable time, so it’s not recommended to act without support from a professional.

Before you accept foreclosure, learn about your legal rights. Foreclosure attorney John Rorem in Gig Harbor, WA, can provide you the defense you need. With over 50 years of experience in real estate law, you can count on this attorney to provide the quality of service you deserve. For more information about the law firm, visit the website. To schedule your complimentary consultation, call today at (253) 858-5358.