Losing the home to foreclosure is always a traumatic event. It is often the sad conclusion to a saga of unfortunate events, depreciating equity, dashed hopes, and the frantic scrambling to catch up with mortgage payments. In many cases, people who have worked hard all their lives find themselves in possession of a home that is worth less than what you still owe the lender after many years of faithfully making monthly payments.
Foreclosures have unfortunately become a common occurrence in the US, a significant number due to loss of jobs, unexpected medical expenses, or natural disasters. Some people were affected by the sudden drop of real estate values, which prevented them from realizing even the remaining balance of their mortgage in an attempt to discharge their debts. They were caught between a rock and a hard place.
However, all is not lost.
Homeowners are seldom aware of the options open to them when foreclosure looms. As discussed on the website of foreclosure defense lawyers of Hong Law in Cedar Rapids, there are three things you can do so you can keep your home, namely: mortgage modification; claiming a violation of the Truth in Lending Act; or filing for bankruptcy.
These legal options are by no means easy to accomplish on your own, but they can be done. However, you would be ill-advised to do so on your own because it is fatally easy to make a mistake if you have no legal training in these matters. The advisability of one avenue over the others will depend on your particular case, so before you jump in with both feet, consult with a competent foreclosure defense lawyer in your state who will be able to properly assess the situation. Not everyone will be eligible for bankruptcy filing, for example, or if they do, not all types of bankruptcy will be advantageous.