Minnesota Foreclosure Defense and Loan Modification Lawyer

Understanding your mortgage lending and foreclosure options

After the housing bubble burst in 2008, many homeowners found themselves owing more money to banks than their homes were actually worth.  Foreclosures became increasingly common as homeowners lost their jobs and were unable to keep up with astronomical debt.  Many homeowners were shocked to realize that the equity that they thought they had in their homes vanished overnight. 

In response to this crisis, the Federal Reserve (the Fed) began to regulate the mortgager-mortgagee loan and loan default process. In addition, the Fed authorized a limited bailout for homeowners who were unable to keep up with their mortgage debts.  In addition, the Fed imposed restrictions on mortgage lenders to ensure that only the most qualified homebuyers, with adequate assets to support mortgage debt, qualify for a loan.  Interest rates are also controlled in part by the Fed.

With the new regulations have come new opportunities for homeowners.  To the extent that you are concerned about how much your home is now worth and your ability to transfer your personal investment at some time before or after your passing, you would be well advised to discuss your legal concerns with an attorney at the Holker Law Offices, PLLC.

Alternatives to foreclosure

Short sale and contracts for deeds are legitimate alternatives to foreclosure. These alternatives allow the lender to avoid costs associated with foreclosure litigation while allowing homeowners to avoid adverse impact on their credit scores.

A modification to your mortgage allows you to catch up on your payments while reducing the amount of future monthly payments.  These modifications can allow you to keep your home even though you are delinquent on some payments.

A short sale is the sale of property in which the proceeds from the sale of the home fall short of the amount due on the mortgage.  Both the lender and the homeowner agree to sell the property at a moderate loss and sort out the deficiency in the outstanding loan at a later date.  In most cases, the lender even offers the homeowner a discount with respect to the repayment in the deficiency in the outstanding loan.

A deed in lieu of foreclosure is where a the bank takes the property back without filing for foreclosure. The bank makes a case-by-case determination to decide whether to accept a deed in lieu of foreclosure.

The Holker Law Office can help you identify the best option for you, based on your unique circumstances and the amount due on your loan.  Call (763) 416-1672 or contact us online to schedule a free initial consultation.