Great news! The Minnesota Homeownership Center reports that there was a 26% reduction in foreclosures from 2015 to 2016, but the rate isn’t zero. Every day businesses fail for unexpected reasons, jobs are lost to no fault of the employee, medical bills stack up due to an unexpected illness, injury or adverse change in healthcare options and other factors too. Other factors could include a toxic mortgage or a mortgage you couldn’t really afford but have been scraping by month after month, house poor as a popper unable to afford porridge and you are now on your last leg. What do you do?
Debt is often referred to as leverage and for a good reason, when you are in debt the lender has all the leverage in that they CAN foreclose on you and take assets if you are behind on your obligations and unable to remedy the situation quickly; this is the bad news. The good news is that lenders want to lend money and get paid back plus interest, this is how they earn their profits. Lenders do not want to own homes and turn to the sheriff’s office for a distressed sale at a material discount where everyone loses but the new buyer, likely getting a steal on your property and the lender getting a substantial haircut on their debt due therefore only recovering value and not profiting. These are important factors to be aware of if you fear you are on the brink of foreclosure and if you are, don’t take these favorable tenants as a signal that you can go it alone to sort the matter out.
There are many mechanisms that can be used to stave off a pending foreclosure and they’re all the product of the lawyer of lenders or laws written by lawyers, therefore, if you are starring foreclosure and need a remedy…you need a lawyer. There are battle-hardened defensive measures that can be employed, there are loan modification options that can be used and there are government sponsored programs that have been put forth. Each of these requires a firm understanding of the governing rules and there are tests and condition that must be met to successfully apply them to your situation. These tests are complicated and involved factors such as your properties value, your personal income situation and other matters such as tax filing compliance that can make or break your ability to utilize various tools to hold back a lender and look to ways to restructure your agreement for the mutual benefit of both parties.
Complex negotiations require extreme competence and experience. When you are dealing with your house, this is not the time to go it alone and hope for the best. This is the time to make sure that your biggest asset, your house, is fully protected and the best remedy available is applied in the proper manner.
Call JD Haas and Associates today at (952) 345-1025. We have over 20 years serving clients in Minnesota and can be an asset to you in the effort of protecting your assets and getting back to financial success and security.