In Missouri, foreclosure is a legal action taken against a consumer when they are far behind on their mortgage payments. The action allows the creditor to seize the property and place it up for auction. With a successful foreclosure, the property is sold to the highest bidder, and any overdue balance is the responsibility of the consumer. A foreclosure attorney in St. Louis, MO provides strategies for preventing foreclosure.
Reviewing the Loan for the Property
The mortgage loan cannot include any predatory terms. The attorney reviews the terms of the mortgage contract to make sure of this, and to compare the mortgage loan to the consumer’s income. The mortgage lender had to establish affordability for the consumer before providing the loan. If they didn’t, the consumer can acquire a loan modification.
Assessing Refinance Opportunities
The consumer can also seek opportunities to refinance the loan. If their creditor is willing, they can refinance it and achieve a lower monthly payment. If they aren’t, the consumer needs to approach other lenders to assist them. If a refinance option is available, the consumer can pay off the original lender and start over with a new mortgage.
Chapter 13 Bankruptcy Claims
Chapter 13 bankruptcy claims stop foreclosure altogether. The automatic stay presented after the claim is approved will last up to five years. This stops the lender from seizing the property or taking any legal action. The claim provides the consumer with an option to catch up on the mortgage payments.
Selling the Home
The consumer could also sell the property through a quick sale. This opportunity allows them to pay off the debt based on the selling price of the property. If they don’t accumulate the full balance, the consumer must pay off any balance left over.
In Missouri, foreclosure presents a legal avenue for the lender to take the property from the consumer. It can, in some cases, render the consumer homeless. The strategies for eliminating this option are to file for bankruptcy, refinance, and loan modifications. Consumers who need to speak to a foreclosure attorney in St. Louis, MO can visit Stlbankruptcyfirm.com to schedule an appointment today.