In Kansas, property owners who are facing foreclosure need to take immediate action or they will lose their home. Several effective options are available to protect the asset and prevent the owner from becoming homeless. Immediate action and contact with their lender are necessary to lower their chances of destroying their credit, too. A local foreclosure attorney in Lawrence KS explains several options for preventing foreclosure.
Mortgage Home Loan Modification
A mortgage home loan modification is secured when the lender added predatory lending terms on the contract. Predatory lending practices are against federal laws, and lenders who use the practices could face penalties. If an attorney locates the terms, the lender must make changes to the contract to prevent unnecessary foreclosures due to unaffordability.
Quick Property Sale
Property owners who want to sell their property to avoid foreclosure have the option to participate in a quick sale. Real estate agents present the property to a variety of investors who want to buy a residential property at a below-market price. The action doesn’t help the consumer get the full balance of their loan every time, but it is an effective way to prevent a foreclosure on their credit history.
Get a Loan Forbearance
A forbearance helps the consumer by stopping the payments for a predetermined amount of time. The consumer gets the forbearance due to job loss or a sudden reduction in their wages. Most lenders offer the option for financial hardships, and the consumers don’t incur a penalty for the missed payments.
File for Bankruptcy
Bankruptcy is an effective way to stop a foreclosure. Once the bankruptcy claim is accepted by the court, the lender cannot foreclosure on the property, and the property is protected under an automatic stay for the full duration of the case.
In Kansas, foreclosure is a process where the lender takes action to seize the asset when the consumer has defaulted on their loan. A loan modification could help the consumer start over on their mortgage or eliminate predatory terms. Property owners who want to review other options including bankruptcy contact us to speak to a foreclosure attorney in Lawrence KS now.