When you fall behind on mortgage payments, your home can enter foreclosure. During foreclosure, your lender will attempt to sell the property to cover the remaining debt. While this process can result in the loss of your home and lasting financial consequences, there are ways you may be able to resolve the situation with the help of a real estate attorney. If you’re concerned about this matter, here’s what you should know.

A Guide to Home Foreclosure

What happens during the foreclosure process?

Typically, the foreclosure process can begin 120 days after loan payments are delinquent. However, you should receive calls and written notices from the lender describing the account delinquency and its penalties. By the 36th day of delinquency, the lender is expected to call—and later, deliver written notice—of your loss mitigation options.

If you can’t comply with these options, you’ll receive a breach letter that states the lender’s intent to foreclose. Next, the lender will sell the home—usually by auction for a reduced rate. Finally, you’ll be served an eviction notice.

What is a Right to Cure notice?

In Massachusetts, lenders are required to provide borrowers in default with a Right to Cure notice as long as they haven’t been served one in the past three years. Under this notice, you’re given 150 days to correct the balance before foreclosure can begin. However, if the lender makes a good faith effort to help you find a solution, this period can be reduced to 90 days.

What is a deficiency judgment?

Sometimes, a lender is unable to sell the home and recoup the amount left on the mortgage balance. In these cases, they may request a deficiency judgment from the court. This judgment may require you to pay the remaining balance.

What are my options?

If you can’t cure the default, you might work with the lender to modify mortgage terms and make repayment more feasible.

If you already have substantial equity in the property, you might also complete a short sale. During this real estate transaction, you sell the home to another buyer for less than the mortgage payment owed. The proceeds of the sale go to the lender.

If you believe the lender has violated foreclosure laws, you can also work with a real estate attorney to present a legal defense that could restart the process or negotiate other solutions.

When you’re facing foreclosure in North Andover, MA, turn to Bernardini Law P.C. Specializing in real estate law, these attorneys will assess the circumstances of the foreclosure and explore possible legal options to help you keep the property. They can also assist with short sales. Call (978) 794-5525 to discuss options with a real estate attorney, or visit the firm online to learn more about their services.