What is a Foreclosure Law Firm?
The simplest way to think about a foreclosure law firm is that it is a law firm that helps people deal with foreclosure (the name’s a bit of a misnomer because there are many potential foreclosure solutions). But in all seriousness, foreclosure law firms are deeply experienced in handling foreclosure cases and often work with other professionals, including real estate agents, community organizations, loss mitigation counselors, financial advisors, and former homeowners who have dealt with foreclosure. It is those other professionals who can be counted on to make good recommendations for a foreclosure law firm that strictly deals with foreclosures. More simply , these foreclosure law firms know foreclosures inside and out. They understand them better than any other professional out there.
Homeowners who facing foreclosure, or even think that they may one day face foreclosure, should seek out help from a foreclosure law firm. While it is true that you do not need to hire a foreclosure law firm before a foreclosure has been filed, it is a good idea to do so as early as possible (and certainly before a foreclosure has been filed). The foreclosure attorneys at those law firms can help you negotiate a way out of foreclosure from your bank before any foreclosure action occurs. In some instances, the foreclosure attorneys can actually help you avoid foreclosure.
What Type of Services Do Foreclosure Law Firms Provide?
In addition to providing legal counsel, many foreclosure law firms also represent clients in court. This is a critical service provided with knowledge and expertise. Here they have most likely represented thousands of people facing foreclosure and have a good understanding of the law as well as local procedures, which makes them quite valuable in the courtroom.
Foreclosure law firms have the experience to recognize the most effective strategies for your case and any additional measures that can be used to improve your situation. For instance, negotiation with the bank may be another option to relieve your debt rather than going through foreclosure. Often there are mortgage relief options not known to most homeowners that can separately be negotiated with your bank. There may also be general debt recovery measures that can be pursued along with mortgage negotiation with each of your banks.
The foreclosure process doesn’t exactly lend itself to settling on emotional terms. In fact, it’s often the opposite as you quickly exhaust yourself with the stress and pressure of pending foreclosure. While this may be your least favorite time of the year to start dealing with an attorney, one who specializes in foreclosure law may be your last and only option for keeping your home.
How to Select a Foreclosure Law Firm
When it comes to choosing a foreclosure law firm, there are several key factors to take into consideration. First and foremost is their level of experience in handling foreclosure cases. It is essential to find a firm that has a proven track record of success in defending clients against foreclosure actions.
Another important factor is the firm’s success rate in helping clients avoid foreclosure. A high success rate is a positive sign that the foreclosure defense attorneys at the firm have the skills and resources necessary to handle your case.
Client reviews and referrals are other valuable resources that should be considered when selecting a foreclosure law firm. A firm with a good reputation for their legal expertise and client service is more likely to provide you with the guidance and support you need during this difficult time.
The initial consultation process is also crucial when selecting a foreclosure law firm. A good law firm will provide you with a free initial consultation where you can discuss your case and learn more about their legal services. Be sure to ask any questions you may have during this meeting to gain a better understanding of the firm’s experience and approach to foreclosure law.
How Much Does It Cost to Hire a Foreclosure Lawyer?
Considering all the potential costs involved with a foreclosure action, it is not surprising that the fees charged by foreclosure attorneys are one of the most common factors when determining whether or not to hire one. Most reputable foreclosure law firms will charge by the hour or set a flat fee per case. The latter is more common, although because foreclosure actions can be very complicated and many times take more than a year from beginning to end, a law firm that charges hourly will probably serve its clients better in the long run .
Some foreclosure attorneys charge the same fee for either representation in court or bankruptcy if the lender exercises the option of proceeding with in bankruptcy.
Note that while law firms charge for their services and then begin work, the total bill for having a foreclosure attorney represent you may be less than what a major mortgage servicer charges in late fees, as well as any other ancillary costs. These may include property maintenance costs, inspections or appraisals.
Foreclosure Prevention and Success
Success stories are important. They can give hope to those struggling with foreclosure, and can be useful to the lawyers reviewing candidates for a consultation.
Example 1: Marin G.
Marin G. found her way to my office when she was facing a foreclosure sale date and a wage garnishment for a debt she incurred three years ago. Fortunately, she had been saving money from work every paycheck on the side. She brought that money to my office and gave me a check for about $4,000 which we used to file a Chapter 13 bankruptcy petition on the even of her foreclosure sale date. As a result, she obtained the protection of the automatic stay, her foreclosure action was stopped, and she was able to go to the Chapter 13 trustee in order to negotiate a good plan. Her car was kept with a significant reduction in payments. She has been successfully making payments into the bankruptcy and expects to finish her plan in approximately four years.
Example 2: Helen H.
Helen H. found her way to me after having worked with a less-than-stellar "volunteer" lawyer in a free legal clinic. She was able to show that her income was less than the median income for a two-person household in Alaska. Thus, she was able to take advantage of the expedited Chapter 7 bankruptcy process, and her debts under credit card, pay-day lenders, and medical bills were wiped out in about 90 days. She had been sued by several creditors before she came to my office, and I was able to negotiate settlements with the creditors so that she could retain her wages and not be subject to claims by the creditors. She was even able to retain a vehicle loan, which we structured so that she could obtain the vehicle’s clear title. She no longer receives dozens of phone calls each week at home or at work. She recently got rid of her landline phone, which was a constant reminder of the financial stress pre-bankruptcy. She has also now obtained reasonable car insurance, and is working with a local credit union to rebuild her credit.
Example 3: Donna C.
Donna C. was facing foreclosure action by a private lender (not a bank) for her investment real estate. As the second mortgage, the lender tried to obtain a foreclosure sale on the course of action filed by the first lender. She called me after receiving word that the foreclosure sale had been scheduled by the private lender without notice to her. She brought the retainer fee for the attorney’s fees and we filed her Chapter 13 petition in about 36 hours. We were able to file the petition before the lender foreclosed on her rental property and gained the protection of the automatic stay. Her rental property was protected from foreclosure, and we now believe that property values will increase to the point of her being able to keep it secured and fully.
Foreclosure Law Firm Frequently Asked Questions
Choosing the right firms often comes down to insight from someone who’s been there before. While general advice can be plentiful, answers to specific questions tend to be more difficult to find. In a modern world with information at your fingertips, homeowners should not have to spend hours searching for answers. Here are the answers to some frequently asked questions that may help alleviate some concerns:
1. Is a Foreclosure Law Firm the Same as a Mortgage Law Firm?
No, foreclosure law firms focus only on foreclosures. Employment law firms focus on employment, as the name suggests. Each firm has its own practices, but foreclosure law firms may help homeowners understand the threat of foreclosure in general and the particulars of their process in particular.
2. How Do I Know if a Foreclosure Law Firm is the Right Foreclosure Law Firm for Me?
You may consider several criteria, including the following:
3. I Do Not Know I Am in Foreclosure! Is That Possible?
It’s true, some homeowners do not receive the letters or warnings other homeowners do . This could be for several reasons, including failure to notify, failure to update one’s contact information, or other issues. Homeowner should ask their lenders or banks if they are in foreclosure in addition to reviewing their credit reports and the public records in the area.
4. What Law Firm Should I Hire for Foreclosure Issues?
The law firm you hire should be a good fit for the type of issues you are facing and have plenty of experience handling those issues. For example, a large firm may be better suited for litigation matters while a small firm may be better suited to handle title issues.
5. If I Am Facing Foreclosure, Can I Contact My Lender Through the Law Firm?
Typically, your foreclosure law firm will deal with the lender directly on your behalf. This helps your lender and your law firm communicate efficiently and effectively. On your part, this streamlines communication and provides you with peace of mind that your case is being handled when it should be.