Anxious Over Foreclosure in Memphis? Here’s What to Do
If you’re facing foreclosure in Memphis, it can be a terrifying and overwhelming experience. You want to know you have options and that taking the right steps can make a significant difference. And if not, it could feel easy to give up.
As a bankruptcy lawyer, I’ve helped many homeowners navigate this challenging process and stop foreclosure for good. Here’s a step-by-step guide to help you take control of your situation and explore your options.
Understand the Foreclosure Process
The first step is to understand what foreclosure is and how it works.
When your house is foreclosed, it means the bank or lender takes it back because you couldn’t keep up with the mortgage payments.
The process starts with the lender sending you a notice that you have missed payments. If you can’t catch up, the lender will go to court to get permission to sell your home. Once approved, your house is sold at an auction, and you have to move out. This process can upend your life and tank your credit score, making it harder to get loans or buy another home in the future.
The process typically starts after you’ve missed several payments. And everything can move very quickly, so it’s important to act as soon as you know you’re at risk.
Review Your Financial Situation
Though rare, sometimes all you need is to adjust your finances.
Take a close look at your income and spending to understand why you’re struggling with your mortgage payments. Create a detailed budget to see where your money is going and identify any areas where you can cut costs.
In addition, create a reminder using your phone or computer so you never forget a payment.
These habits will help you determine whether you can realistically catch up on your payments or if you need to consider other options. And no matter what, they’ll help you stay out of debt in the future.
Communicate with Your Lender
Contact your lender as soon as possible to discuss your situation. Don’t ignore letters and phone calls from the bank, even if it brings up a lot for you. Open all your mail and respond promptly.
Many lenders are willing to work with homeowners to find a solution, especially if you communicate early. You might be able to negotiate a repayment plan, forbearance, or loan modification to make your payments more manageable.
Explore Your Options
If you catch the problem in time, you may have a few options that can help.
A loan modification changes the terms of your loan to make it more affordable. This could include reducing the interest rate, extending the loan term, or even forgiving a portion of the principal. Contact your lender to see if you qualify for a loan modification. There are also government programs, like the Home Affordable Modification Program (HAMP), that might be able to help.
In addition, you might have the option to refinance. Refinancing your mortgage means taking out a new loan to pay off your existing mortgage. This can be a good option if you can get a lower interest rate or more favorable terms. However, refinancing can be challenging if your credit score has dropped or if you don’t have very much equity in your home.
If you can’t afford to keep your home, selling it before it goes into foreclosure can help you avoid the negative impact on your credit score and might even leave you with some equity.
You might consider a short sale if your home’s value is less than what you owe on your mortgage. In a short sale, the lender agrees to accept less than the full amount owed.
Stay Informed and Take Action
The most important thing is to act quickly and not to ignore the situation.
Stay informed about your rights and the foreclosure laws in your state. Each state has different rules and timelines for foreclosure, so knowing your rights can help you take appropriate action.
But not everyone knows the rules and timelines. In fact, it can be extremely confusing. That’s where we come in.
Get Legal Help If Facing Foreclosure in Memphis
Our Memphis attorneys have helped thousands of people facing foreclosure in Memphis. We offer a free consultation, where we can can discuss:
- Any deadlines coming up
- Your options outside of bankruptcy
- How Chapter 13 can help stop foreclosure for good
- What to expect from the process
- And any other questions or concerns you might have.
Facing foreclosure is stressful, but you don’t have to go through it alone. We’re here to offer our award-winning compassion and care. We’ll work with your individual situation. And we’ll help you through it, every step of the way.
Contact me today to discuss your situation and explore your options at no charge. You can take control of your financial future now.
Just call 901-327-2100 or reach me online.