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Whether you are trying to avoid foreclosure, or trying to get your home back after foreclosure, you need to know what you can do and what you cannot do when it comes to defending yourself against foreclosure. Then, you can get the help of a foreclosure lawyer who will work to make sure you aren't taken advantage of in the process. Let's jump into this article about real estate law now!
Refinance your home to pay off your mortgage
Getting a new mortgage can save borrowers thousands of dollars over the life of their loan. But it also has a number of potential pitfalls. It is important to do your homework before you commit. If you have poor credit, refinancing may be more complicated than you think. The best thing to do is get several quotes and choose the loan that offers you the best terms.
The most common reason for refinancing is to obtain a lower interest rate. If you have a good credit score, a low interest rate can mean a lower monthly payment, which can help to reduce the overall cost of your mortgage. However, if you have a bad credit score, you may be charged a higher interest rate. In addition, you will likely have to pay for private mortgage insurance (PMI). This can cost hundreds of dollars each month.
There are also cash-out refinancing options, which allow you to pull out equity from your home. This is a good way to use the equity you have built up to pay off high-interest debt. However, you will also have to pay for closing costs. In most cases, the costs add up to thousands of dollars, so you will have to decide if the benefits outweigh the costs.
Cash-out refinancing can be a good option for borrowers who need a certain amount of money for a specific purpose. Before you refinance, you should determine the purpose of your loan and whether or not you have enough equity to qualify. You should also estimate how much you will need to pay for closing costs. It may make more sense to pay the closing costs upfront instead of spreading them out over the life of the loan.
A cash-out refinance is also a good way to consolidate high-interest debt. This can allow you to pay off your debt faster, which can help you to pay down your mortgage sooner. In some cases, you can get a VA loan that allows you to refinance up to 100 percent of the value of your home. However, this type of refinancing is not for everyone. You must be careful about how much you borrow, because it can increase your monthly mortgage payments.
It is important to remember that the closing costs of refinancing your home can add up to thousands of dollars. These costs include title services, survey fees, attorney fees, and more. Some lenders offer no-closing-cost options, which can result in a higher interest rate and a higher monthly payment. You can also roll the closing costs into your loan amount. This may save you money in the long run, but it is still important to do the math to determine whether or not refinancing is a good idea.
Filing for bankruptcy after foreclosure
Whether you are in the process of foreclosure or just at risk of losing your home, filing for bankruptcy is an important step to take. Filing for bankruptcy can put a temporary stop to the foreclosure process and give you time to figure out how to get your finances back on track. It can also allow you to buy time to negotiate a loan modification. In addition, it can provide you with a chance to start building a savings account and avoid paying taxes on your deficiency debt.
The best time to file for bankruptcy is usually before the foreclosure sale. That is because your lender may be in the middle of a workaround or may not have the resources to begin foreclosure until after the bankruptcy is filed. Depending on your situation, filing for bankruptcy before the sale may help you keep your home and avoid paying taxes on your deficiency. You may also be able to keep your home if you pay off your mortgage in full before the foreclosure sale. In addition, if you file for bankruptcy in a timely manner, you may be able to keep your home even if you are behind in your payments.
A "deficiency" is the difference between the amount you owe on your mortgage and the fair market value of your home. For example, if you owe $10,000 on your home and it is auctioned for $15,000, your lender may be able to collect the $10,000 and forgive the remaining $5,000. This is often the most applicable type of deficiency in a foreclosure situation.
The "autonomous stay" is the name given to the order of the court that prevents your creditor from taking any collection actions until a foreclosure case is filed. A lender may file a motion to lift the automatic stay in order to start foreclosure or they may file a motion to get a hold of your home. While a motion to lift the stay may take a few months to process, it is worth the wait.
The "automatic stay" is also the name given to the order of the court in the bankruptcy court that prevents your creditor from taking action to collect on any debts you owe until a foreclosure case is filed. It may take a few months to lift the automatic stay, but if you are in the process of filing for bankruptcy, the wait could be worth it.
Another good reason to file for bankruptcy before the foreclosure sale is that you may be able to file the deficiency if you can prove that you can't pay off your mortgage. This is not always the case, however, and you should consult a bankruptcy attorney to ensure you are doing what you can to stay in your home.