When you are facing foreclosure, it can be overwhelming trying to determine your best path. Without a doubt, your first step should be to consult with a foreclosure defense attorney. Taking this first step as soon as possible is crucial to giving you the best chance of a satisfactory outcome in your case. As more time passes in your foreclosure case, more interest will accrue on your loan and equity will be lost. Especially if you intend to move from the property, getting an attorney involved early on can get the cased resolved quickly and save you money.
How early should I hire a foreclosure defense attorney?
The moment you know you are at risk of foreclosure, you should be consulting a foreclosure dense attorney.
Many mortgage lenders offer a pre-lawsuit notice provision in their contracts. This means the lender must provide advance notice of a foreclosure lawsuit to the borrower prior to filing. Typically, the lender must give notice ten days prior to filing a foreclosure complaint. In New Jersey, the Fair Foreclosure Act requires lenders to give borrowers notice 30 days prior to filing the foreclosure complaint. The document you receive may be labeled “demand letter” or “Notice of Intent.” They will be sent through regular or certified mail.
The moment you receive this letter, call a well-respected foreclosure defense attorney in your area. It is critical to make your first moves prior to the lender filing the foreclosure complaint. Proactively working with an attorney before the complaint is ever filed can save you money in three important ways:
1. You won’t have to pay for your lender’s attorney fees.
2. You will pay less in default interest (see below).
3. You will pay less in your attorney fees.
Working with an attorney from the beginning will prevent you from having to pay an attorney to untangle a bigger, more complex mess later on. The courts and your lender are also much more likely to work with you towards a favorable outcome if you are proactive about your case from the beginning. Giving your attorney time to put you in a favorable position for negotiation can save you a lot of money, time, and headache.
Some loans have what is called “default interest.” This is a special, higher interest rate that kicks in once you default on your loan. Default interest can be an excessive amount (sometimes as much as 5% higher than your normal rate) that can make a huge difference in the final judgment amount you may face. Once you go into default interest territory, it is critical to work with a foreclosure defense attorney to get the loan reinstated, modified, or to sell the property as soon as possible. An experienced attorney knows the law and how to work with mortgage lenders to get the issue resolved quickly.
If you are looking for an experienced foreclosure defense attorney in NJ, Veitengruber Law has your back. We know how to work with mortgage lenders to negotiate a resolution that satisfies all parties.