Lately, we have been inundated in the media with these buzzwords. In light of falling home prices and rising unemployment, many families are at risk of losing their homes because they have to choose between putting food on the table or paying their mortgage. There are options that exist in order for you to maximize your chances of saving your home. A common misconception is that you can only qualify for a loan modification if you are behind on your monthly mortgage payments. This is not true. If you are able to continue making mortgage payments, be sure to continue to do so while you negotiate with the bank in an effort to obtain a loan modification. This will result in keeping away a foreclosure filing which is a legal quagmire.
In addition, perhaps a short sale is a viable option. However, just because the bank agrees to sell your home for less than you owe, does not necessarily mean that they will agree to waive any deficiency against you. A deficiency is the difference between what you owe on your mortgage and what the buyer paid for the property.
Finally, a Deed in Lieu is an option where, after meeting several conditions, the bank takes legal and equitable ownership of your home and you walk away. However, there are certain risks that exist with this option.
If you or a loved one is facing a legal issue arising out of homeownership, please contact the lawyers and Hutchison & Tubiana. We are experienced trial attorneys who have a great deal of experience in these matters and will provide you with a telephone consultation.