A foreclosure is the process the bank or lender uses to take your home.  Essentially, the bank or lender asks that the court allow a repossession of your home so the outstanding loan can be satisfied.  In today’s economy there is usually a deficiency balance owed even after the foreclosure.  This means that even after the foreclosure you may still owe money to the bank.

The Foreclosure Process

If you are among the thousands of homeowners who have received a summons or a complaint, you are being sued.  This summons signals the official start of your foreclosure.  The job of a foreclosure attorney is to determine what defenses are available to you and show you the best way to overcome the situation.  From the date that you receive your summons or complaint, time is of the essence.  To protect your rights, you must respond in writing within 20 days or lose the right to do so.  Even if you think that you want to “give up” your house, are thinking about a short sale, or believe that a loan modification is forthcoming, you should immediately contact a foreclosure attorney.

By fighting a foreclosure you can gain the time you need to carefully determine your best course of action, and you will know that the decisions you make are based on accurate information.

Alternatives to Foreclosure

Even if it turns out that there are no defenses in your particular case, a skilled and experienced attorney can educate you as to one of the many effective alternatives to foreclosure.  Two of the most common alternatives are:

• Short sale – A short sale allows a borrower unable to pay their mortgage to sell their home for less than what is owed to their lender, by arrangement. Once the sale is complete, the lender agrees to accept the proceeds of the sale. The borrower will not owe the bank the deficiency between the sale price and the mortgage balance.
• Deed in Lieu of Foreclosure – A deed in lieu of foreclosure works much like a short sale. However, in this transaction a borrower voluntarily surrenders the title of their home without being involved with or handling the home's sale. In many cases, a bank will require the home to be on the market for some period of time before accepting a deed in lieu of foreclosure.

At RICE & ROSE, we understand that your home is your biggest investment, financially and emotionally.  Our attorneys our dedicated to providing a superior level of service and have the experience and credentials to be your strongest advocate.

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