Know Your Options When Faced with an Upside Down Mortgage

Foreclosures across the nation are the lowest they have been in over six years. According to RealtyTrac, an online real estate tracking company, there were nearly 145,000 foreclosures in April this year which is a 23 percent decrease from April of 2012. While this news is good, it does little to help those who are currently facing the loss of their home because they can’t keep up with mortgage payments or have realized that they will be paying far in excess what their home is actually worth if they do keep to their mortgage payments. The dream of owning a home can turn into a nightmare when it comes to an underwater mortgage or a foreclosure notice. There are options available if you owe more on your home than it is worth or if you are in need of foreclosure defense; consult with a bankruptcy lawyer with expertise in this area to get legal help for your specific situation.

Strategic Default, Loan Modification, Short Sale and Bankruptcy Protection

There are several ways to either get rid of an upside down mortgage situation or avoid a bank foreclosure of your home. One possibility is a strategic default. This route does not prevent a foreclosure but can be thought of as a way to “plan” a foreclosure to your advantage so the exorbitant monthly payments you have been making on your mortgage can be used to pay off other debts or liabilities. Then the homeowner virtually walks away from the home with the chance of moving on to a better home-ownership situation. If you wish to keep your home then the mortgage holder may be willing to negotiate a loan modification. This can help you obtain a more reasonable mortgage. Other possibilities for preventing a foreclosure include filing for bankruptcy or just calling it quits with your lender through an agreed upon short sale. You walk away from your home in a short sale but it prevents a foreclosure from marring your credit.

Bankruptcy Attorney for Irvine Foreclosure Defense and Options

Everyone’s circumstances are different so each individual case deserves a specific solution tailored to the needs of that case. A bankruptcy attorney with the law offices of Peter Rasla & Associates understands this. You need your options and the possible consequences carefully laid out so you can make the decision that gives you the outcome you need to get your financial life back on track. Don’t hesitate to call the firm as soon as possible to find out what your options are if you are being tied to an upside down mortgage.