How to Stop Foreclosure, Modify Your Mortgage, Lower Your Interest Rate, and Lower Your Mortgage Payments: Advice from a Massachusetts Attorney.
If you are behind on your mortgage payments, your interest rate is about to adjust, or your payments are simply becoming unaffordable, the first thing to do is take action.
The worst thing an owner can do is nothing. The mortgage company will not seek you out to ask if you want to solve your financial problems.
Sometimes, simply by calling your servicer and explaining the reason for your late payments, you can stop impending foreclosure proceedings and modify your mortgage.
Here in Massachusetts, the mortgage company is legally required to give you a “90 Day Notice” when you fail to make your payments. This notice, which the mortgage company must provide you as a condition of initiating foreclosure on your home, informs you that you have 90 days before foreclosure can be foreclosed and allows you to recover late or late payments during those foreclosures. 90 days. days. If you receive one of these notices, it is vital that you act immediately.
If you take the proper steps (which often means getting help from a qualified Massachusetts mortgage and foreclosure attorney), you may be able to modify your loan at this time.
Why? Because the mortgage company wants to keep you in your home as long as it can get a reasonable payment amount from you. You know that your loan has become inaccessible to you, but if you can show that you can afford a reduced payment, you can often stop foreclosure or modify your loan.
How to do this? The best way is to get legal ammunition. There are a variety of legal claims you could make against your mortgage company that you don’t even know about. For example, did you know that if there are material errors on your HUD-1 Settlement Statement, you may be able to terminate your mortgage under the Truth in Lending Act? Or that if a broker put a mortgage on you with the intention of refinancing it in a few years, the broker could be liable for a “predatory loan”?
Massachusetts has foreclosure laws that are extremely favorable to homeowners, and the Massachusetts Attorney General has been vigorously enforcing these laws against large lenders. You can even get money damages against your mortgage servicer if they mismanage the money in your escrow account. The number of claims is only limited by your (or your attorney’s) knowledge of the law.
Once you have the legal weapons you need against your mortgage company, the next step is to present your claims to them to demand a loan modification or other foreclosure assistance. If they refuse, you can take them to court. In order for you to dismiss your claims, most servicers will allow the foreclosure to stop or perform a loan modification.
Therefore, a foreclosure is not always inevitable when you can no longer afford your mortgage payments. With the right help, a default can be the first step in modifying your loan.