In Missouri, consumers who are facing foreclosure should go over their options to prevent this action. They have a small window of time to accomplish this task before they create serious damage to their credit. This could prevent them from acquiring a new mortgage for a period of ten years. The following are methods used by a foreclosure lawyer in St. Louis, MO to stop creditors from completing this legal action.
Loan Modifications to Prevent Foreclosure
Loan modifications are performed according to the terms of the loan. If the attorney identifies any predatory terms that are now illegal under federal laws, they can reverse them by demanding a loan modification. This could lead to a better interest rate, lower payments, and the elimination of penalties. The process allows the consumer to restart the mortgage and place any overdue balances at the end of the loan.
How Does a Quick Sale Work?
A quick sale is a process that allows the owner to place the property up for sale. The owner must place it at a value that reflects what they owe in order to sell it quickly. If the owner manages the sell it for what they owe, they won’t have any further obligations to their lender. If they don’t, they are required to pay the remaining balance.
Refinancing the Mortgage Loan
The loan can also be refinanced through another lender if the owner’s credit isn’t too damaged. These loans may increase the interest rate and the payments, but they prevent the effects of a foreclosure.
Filing for Bankruptcy
The owner can also file for chapter 13 or 7 bankruptcy. The plans provide an automatic stay on the property and prevent foreclosure. The lender cannot seize the property through foreclosure once the bankruptcy case is approved.
In Missouri, consumers have ways to stop a foreclosure. These options can prevent serious damage to the homeowner’s credit, and stop their lender from rendering them homeless. These include modifications, quick sales, refinancing, and bankruptcy. Owners who need help from a foreclosure lawyer in St. Louis, MO should visit Stlbankruptcyfirm.com for more information now.
