There are Banks which do cooperate with homeowners seeking modifications to their home loans after receiving a complaint in foreclosure. However, cooperative Banks are rare which it is why it is important to have a lawyer on your side to encourage your Bank to cooperate. If your Bank chooses to cooperate, you can generally expect the following schedule of events (example staring in January, 2017):
- Homeowner First Missed Payment: Month 1 (February, 2017)
- Bank Collection Efforts: Month 2-7 (March-July)
- Bank Lawsuit Filed: Month 8 (August)
- Attorney Retained to defend home: Month 8 (August)
- Mediation: Month 9 (September)
- Application for Mediation: Month 9 (September)
- Paperwork Exchange: Month 10 (October)
- Homeowner First Trial Payment Month 11 (November)
- Permanent Modification Plan: Month 12 (December)
- Homeowner payments Begin: Month 13 (January, 2018)
DEFEND!
Every homeowner has the right to defend their home in our court system. Each homeowner should consider the benefits of doing so. One common reason a homeowner should DEFEND! is simple–you love your home and want to continue living in it!
A foreclosure case example may help you understand how hiring an attorney to fight a Bank foreclosure can work to your advantage.
The “Henrietta Homeowner” Foreclosure Case
Henrietta was a happy homeowner until illness caused her to lose time and income at her clothing store. Henrietta began falling behind in making her mortgage payments. Her Bank’s collection department began contacting Henrietta requesting that she pay her current and past due mortgage payments. Henrietta would have liked to pay the Bank but couldn’t. Finally the Bank filed a foreclosure lawsuit.
Rather than ignore the foreclosure notice, Henrietta contacted my law office for legal advice. After reviewing Henrietta’s situation, I immediately filed for mediation and then made application for a modification of Henrietta’s bank loan.
The paperwork exchange occurred and mediation was successful.
Henrietta’s health improved and she then faithfully paid her monthly trial payments for three months. By altering her circumstances, spending habits, Henrietta put herself on a healthier financial path too.
The Bank then offered her a permanent modification plan. Henrietta began making regular monthly mortgage payments and achieved her goal–she saved her home!
From the first missed payment to the 1st home loan modification payment, over 13 months had passed in Henrietta’s case.
The earlier a homeowner seeks help from an attorney to prevent a home foreclosure the better. Even when a Bank ‘cooperates’ in the homeowner’s efforts to remain in their home, the process can easily take over one year.