Most adults in Tennessee would agree that a home is often a person’s most valuable asset. Many people know what it is like to work for years to save up enough money to put a down payment on a house. Unfortunately, many people also understand how stressful it can be to encounter financial challenges that place home ownership at risk, especially if a Notice of Foreclosure arrives in the mail.
Missing a mortgage payment isn’t enough to activate foreclosure
There is a difference between falling behind on one or two mortgage payments and being in default on a loan. However, if a mortgagor misses two payments and is more than 120 days late, the lender in question may decide to begin foreclosure proceedings. Sending out a Notice of Foreclosure is often the first step of the process; however, it does not necessarily mean the person who owes the debt will lose his or her home. There are often options available to halt foreclosure.
Never disregard a Notice of Foreclosure
Discarding a notice that arrives in the mail from a lender is never a good idea. There is a much greater chance of retaining ownership of a home if the homeowner responds to the notice as soon as possible. Many lenders are willing to modify a loan to avoid foreclosure because the latter involves a lot of paperwork and other costly, time-consuming issues, which most lenders would rather avoid.
There are rights that help protect home ownership
The average person with no specific background in real estate laws or mortgage loan information might not know what options are available to fight foreclosure. A concerned homeowner can request a meeting with an attorney who is well-versed in this area of law in order to explore options, such as filing for bankruptcy, which help stop foreclosure proceedings. Such an attorney can review the specifics of a particular case and make recommendations that may help a client avoid losing his or her home.