Foreclosure Defense

Foreclosure Defense Attorney in Jackson TN – Get Expert Help in Bankruptcy Law

If you are currently under threat of foreclosure, you do not have to face it alone. I can stop your foreclosure in its tracks and help you to save your home.

Foreclosure occurs when you are behind on your mortgage payments, and the mortgage company (or bank) decides to take the house it is holding as collateral for your loan from you by law. A foreclosure sale date is set and notice is given to the “world” that your home will be sold on a particular day and time. The notice is usually run in a local newspaper three weeks consecutive, and oftentimes also appears online. Unless the foreclosure is stopped, the foreclosing attorney appears at the steps of the courthouse at the county in which you live and “cries out” the foreclosure sale, asking anyone who appears to make a bid on the property. Typically, if no one shows up to buy the property, the mortgage company will buy the property themselves at the foreclosure sale for the amount that is owed against the property.

The important thing to understand about this process is that once a foreclosure sale occurs, you no longer own the property, and it is too late to do anything to keep the property.

As I write this, in March of 2021, many mortgage companies are attempting to work with borrowers until the pandemic is over. There are a wide range of what is being done, but mortgage holders seem to be holding off on foreclosing borrowers who are behind on their mortgages, offering some temporary workouts like putting the missed payments to the end of the note or otherwise allowing payments to be missed without starting a foreclosure proceeding.

The problem is that when the pandemic is over, we don’t know what mortgage companies are going to do? Are they going to demand all missed payments at once? Are they going to allow the missed payments to be caught up by paying “extra” on the regular mortgage payments until the borrower is current? These are all unknowns at this point in time.

One thing is for certain. If you get a foreclosure notice, you need to contact an attorney IMMEDIATELY to avoid losing your home. By the time a foreclosure is declared in Tennessee, the borrower usually has 3 weeks or less before the sale. Do not waste critical time by putting off talking to an attorney.

How Can We Help You Avoid a Foreclosure?

Second Mortgage Foreclosure

Let’s suppose the lender holding the first mortgage to your home forecloses on your property. In that case, any second mortgage, such as a home equity loan, puts the lender in the position of being unable to recover anything from the property’s sale. It is the primary mortgage holder who has priority. In general, second mortgages are treated as recourse loans, wherein the lender may have sufficient cause to sue you to recover the amount you still owe.

Short Sale

In this instance, when you owe more on the loan than what you may be able to get if you sell the house, you may be able to negotiate a short sale. The objective here is to get the lender to allow you to sell the property for less than what you owe them and absolve you from the loan’s balance.

Deed in Lieu

A deed in lieu of foreclosure is one of the simplest ways to avoid foreclosure. You would need to contact your lender and get them to agree to accept the offer of surrendering the deed to the property in exchange for forgiving the loan’s balance. This allows you to be cleared of the mortgage with the least consequences to your credit.

Short Sale Negotiation

A short sale negotiation is an option that may seem to serve the best interests of everyone involved. In a short sale, the bank can avoid the costly foreclosure processes while you get the chance to walk away from a home that you can no longer afford.

This is not always true from the bank’s perspective. You should not expect the bank to agree to your request willingly. They often put up considerable resistance to a short sale. If you would like to look at this option, it is always best to have someone on your side who is highly skilled in negotiating short sales.

Waiver of Deficiency

In negotiating a short sale, it is crucial to secure a waiver of deficiency from the bank. This waiver constitutes the bank’s agreement that they will not compel you to pay the difference between the amount you owe on your home and its sale price. If not, you could be marked delinquent for the balance of the loan, leading to further credit damage. You may even end up getting a court order for you to pay the remainder.

Strategic Default

Deficiency Judgement

Losing your home in a short sale is painful enough; what can make matters worse is still owing the bank a substantial amount of money. Proceeds from home foreclosures involving underwater properties usually are not enough to erase the outstanding loan balance. In such circumstances, the lender can still go after the borrower to recover the rest of the amount owed.

Do I need a foreclosure defense attorney?

You are not required by law to hire an attorney to represent you. You are entitled to represent yourself in any negotiations with the bank. You can even speak on your own behalf in court. The question is, “Why would you want to?” Financial and real estate transactions are complicated. Add to that the complexities of state and federal laws mean you could quite easily find yourself overwhelmed.

If you could fail to prove your case against the foreclosure, the bank might deny your request for a short sale, and worst yet, you could even be sued for deficiency even if the bank agrees to a short sale. Do not take any chances; call us now for a free consultation.

We make our services affordable to our clients. We always work to achieve the best possible results. Talk to us so we can get started on your case.

Robert B. Vandiver, Jr
Attorney at Law

Every individual seeking bankruptcy information is unique. My staff and I take the necessary time to get acquainted with you and your situation, analyze your debt and come up with a plan to overcome them. Contact my office today!