It is not uncommon for an individual to default in their promise to comply with the payment schedule of their home loan. But such predicaments do not warranty a panicky situation. According to Prince George’s County Foreclosure Attorney, if borrowers breach their mortgage contract they have legal ways to prevent losing their home in foreclosure. Here is something the foreclosure lawyer has been reiterating all along.“Under the U.S. law, the mortgage lender that accepts the borrower’s monthly payment cannot officially start the foreclosure process until the payment is due for more than 120 days”. It must be kept in mind that if the lender files a lawsuit in court, the homeowner can appropriately respond to the complaint. “Each party has the option to request evidence from the other”, says a Prince George’s County family lawyer. The good news is homeowners have laws that can protect them from foreclosure. Here are two of the several defenses that can help the borrower. 1. Consumer Fraud Act There is most likely a law in your state that protects consumers, including homeowners, from unjust and deceptive acts from lenders. Such laws prohibit bad commercial practice, false promise, misrepresentation, and suppression of any material facts from the borrower(s). In addition, there can be cases where loans can be considered predatory because they were not right for the borrower. 2. Violations in being transparent to the borrower All Lending Acts require that the lender must disclose the terms of the mortgage to the borrower at the time the loan is made. The Lending Acts are designed to provide an accurate explanation of the cost of the home loan. “It is quite possible that the lender has made certain contravention(s) to the law”, says a Prince George’s County Foreclosure Attorney. In the U.S., borrowers have a right to the Fair Foreclosure Act. The Act stipulates that the homeowner has the right to get an opportunity to set right the default at any stage of the foreclosure proceedings. Some ways to keep your home In all probability, you would like to keep your home in whichever way possible. The federal law gives you time, so a loan modification can be distinctly possible. Here are some alternatives available to you. Modified repayment plan With a restructured repayment plan, you can once again pull alongside to the loan by paying your regular monthly payment plus an additional mutually agreed amount. Provisional discount in interest rate You can talk to your lender so that they agree to reduce the interest rate for a short period, and promise to continue paying the repayment amount with the full rate thereafter. Mortgage modification The lender may agree to any of the terms of the original loan to make it easy for the borrower. As an example, the lender may reduce the monthly installments to a more reasonable level by reducing the interest rate or by extending the duration of the loan. In any case, you must bear in mind that hiring a lawyer early in the process will greatly help you in understanding several of the options available to you than what might be on hand during the foreclosure proceedings.
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