Owning a home is a fundamental American dream. Mortgage lenders and banks always come in handy when you need money to finance a home purchase. Regardless of how prepared you are, a lot of things can happen during the mortgage loan repayment period, rendering you incapable of making payments. Once you have defaulted your mortgage payments for three consecutive months, the bank will send a demand letter. In the past, it was tough to stop the foreclosure process once the mortgage lender sets the ball rolling. Fortunately, the court system has realized that the lender is not always right, and today, it is simple to challenge a foreclosure with the help of a foreclosure defense attorney.
Here are three possible reasons for defaulting mortgage payments and how to challenge the foreclosure with an attorney's help.
Problems Arising From Adjustable Rate Loans
There are two main types of mortgage loan repayment models; fixed-rate loans and adjustable-rate loans. Many homeowners opt for adjustable rate loans because, typically, they are a definite financial decision that can save you thousands of dollars in loan repayments. Naturally, there is an initial period when you have a fixed repayment installation. After this period, the rates fluctuate depending on the interest rate changes and the index chosen by the lender.
If the rate rises higher than your financial capability, you might start missing payments, and the lender might start the foreclosure process.
Problems Arising From a Divorce
Married couples often make financial decisions together. In the process of sharing out financial responsibilities, you might have been the one who got the mortgage repayment. When your partner leaves and they stop making their part of the economic contribution, you might miss payments and end up with a demand letter.
The emotional struggles can also lead to neglect of your financial responsibilities. The situation can degenerate into losing both your marriage and your home.
Problems Arising From Personal Debt
Most lenders will not approve your mortgage unless you have a stable job and your credit card debt is under control. However, you can lose your job during the loan repayment period, and your debt could get out of hand.
When pressed between paying the mortgage and dealing with credit card debt, you might choose the latter, leading to demand letters from the mortgage lender.
Reach out to a foreclosure defense team like Margery E. Golant, PA for a consultation.Share