Kansas homeowners face foreclosure when they are delinquent with their mortgage payments. Under Kansas law, the lender could start this process if the homeowner is at least ninety days late on their payments. To avoid foreclosure in Lawrence, KS, an attorney could present the homeowner with several strategies to manage their debts more proactively.
Avoiding Potential Foreclosure Scams
The first step in assessing the homeowner’s requirements is to verify that their lender has started the foreclosure process. Identity thieves and scam artists are known for presenting homeowners with limited information about foreclosure in hopes of gathering critical information. The attorney contacts the lender to determine if they have started the foreclosure process and help the owner avoid a potential scam.
Mortgage Refinance and Modification
Homeowners have two opportunities for bringing their mortgage up to date. They could refinance the mortgage and adjust the late payments to the end of the loan. This could help them achieve a better interest rate based on their credit score.
A loan modification allows the attorney to determine if the mortgage has any terms that could relate to predatory lending practices. If they discover these terms in the contract, the attorney requests a modification from the lender and makes adjustments where necessary. The most common forms of predatory lending practices include presenting a higher interest rate when a more affordable option is available. Lenders using these practices could approve borrowers for loans that aren’t affordable. Through modification, the attorney ensures that the consumer can afford the mortgage.
How Bankruptcy Prevents Foreclosure
Bankruptcy provides homeowners with an automatic stay. This prevents their lender from continuing the foreclosure process. For chapter 13, the stay lasts up to five years. For chapter 7, the consumer achieves a stay for up to six months. These opportunities give the consumer time to bring their debts up to date and settle them more amicably.
Kansas homeowners facing foreclosure could lose their right to live in the property. The impact on their credit makes it impossible for them to purchase another property. To avoid foreclosure in Lawrence, KS, the homeowner should visit Joewlaw.com for more information today.
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