How Low Will My Credit Drop After a Short Sale or Foreclosure?

How Low Will My Credit Drop After a Short Sale or Foreclosure?

With credit scores, one can easily predict the possibility of you making payments on time, paying off loans, and helping a lender determine whether you are a risk. Credit scores are determined by an individual’s lending history and ability to repay and manage debts based on the agreement. Factors like letting your mortgage payment slide, failure to make timely payments tend to affect your credit score. There is every tendency for your credit score to be impacted if you suffer a foreclosure or short sale, which will, in turn, make you a potential risk for a lender.

If you are thinking of taking a short sale or foreclosure for your home, after reading this, you will become aware of how much your credit score could drop. However, at this point, it is necessary to consider the meaning of short sale and foreclosure

 

WHAT IS A SHORT SALE?

With a short sale, you have the opportunity of selling your home and using the gains or proceeds from the sale to pay off your mortgage irrespective of whether the profits don’t make up the full balance. When you attempt to sell your home for even less than you owe in a short sale, the lender earns the proceeds. Not every lender will be open to the idea of a short sale, and homeowners have to be at least 90 days late for the lender to be open to that idea. In some cases, lenders might choose to forgive the unpaid balance on the mortgage or not. In some states, certain laws allow lenders to seek deficiency judgments, which ensure that you pay the difference between the balance due on the mortgage and the sale price.

 

WHAT IS A FORECLOSURE?

There is every chance for you to be faced with a foreclosure when you fail to make your mortgage payments, and the lender chooses to seize and sell your property in other to make up for their financial losses. It takes a lender four missed payments to result in foreclosure proceedings. The foreclosure process tends to vary by state, but if you are going to be faced with a foreclosure, then you would receive a notice most likely through a mail.

 

HOW LOW A SHORT SALE CAN REDUCE YOUR CREDIT SCORE

A short sale will most likely affect your credit score and not just by a small margin. It is capable of dropping it to as low as 100-150 points and that depends on where you started; your credit score will only fall more based on how high it was. Short sales are regarded as the worst things that can affect your credit score. Credit scores tend to range from 300 to 850; for example, if you have your credit score between the range of 750-800, it can easily reduce to 150 points or lower in a short sale. If you are within the range of 650-720, after a short sale, you could lose 100 points and fall into what is commonly referred to among lenders as the subprime category.

 

HOW LOW A FORECLOSURE COULD REDUCE YOUR CREDIT SCORE

Foreclosures tend to have more effect on credit scores. Now according to FICO, based on a person’s starting scores, a fair number of homeowners who go through a foreclosure experience a drop in their credit score from between 85 and 160 points. An individual with a good starting score of 680 could reduce to between the ranges of 579 and 594, which is regarded as a fair or poor score range, and someone with an excellent score of 780 may reduce between 620 and 642. Foreclosures can affect a consumer’s credit for as long as seven years.

It is necessary to understand this because a low credit score can make it difficult or impossible to borrow. Plus, as your credit scores drop, your interest rate will only continue to increase even if you are eligible for credit loans.

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How Far Behind Do I Have to Be For Mortgage Forbearance?

How Far Behind Do I Have to Be For Mortgage Forbearance?

Under normal circumstances, there are policies owned by all lenders, and that is what you should be working with. However, if you are finding it difficult paying you mortgages either due to lose of job or increase in costs. There is a 15-day grace period, and if you are able to meet up and make payment, you are all good but if you happen to miss your second payment, it is said that you have defaulted and you should expect a change in your mortgage servicer.

Once you have noticed that you won’t be able to meet up with your payment, it is advisable to contact your lender and discuss mortgage forbearance.

MORTGAGE FORBEARANCE

This is an official agreement between the home owner (you) and the lender, if for any reason you are unable to pay your monthly mortgage amount. Your payment requirements will be frozen by the lender for a period of time. After the agreed period elapses, you are expected to continue your normal monthly payments and you will also pay back all balance owed, including all interests gathered during your grace period. This sounds like a great deal especially to those who have lost their jobs during this Coronavirus crisis, it helps you skip some or all of your monthly mortgage payment for as much as a year. But it should be considered as your last resorts, and should be avoided if possible because while it can be a life line for a short period, it will undoubtedly lead to credit issues.

More: Is Mortgage Forbearance a Good Idea?

HOW TO WORK WITH YOUR LENDER TO GET FORBEARANCE

STEP 1: REACH OUT

Contact your lender and inform them about your present crisis financial state. Some of them have online chat options or a forbearance form you can use also. Some key information and documentation will be needed by your lender, so be prepared to provide these:
• An outline of your financial state, also the cause of the financial issues and when you think all be fixed back to normal.
• Mortgage loan or your account number
• Your monthly income before taxes
• Monthly expenses clearly itemized

Remember, that your lender wants you to keep your home and keep paying your mortgage so they will do their best to help, don’t be afraid to ask for help.

STEP 2: REQUEST

The lender must follow some steps before granting you the forbearance agreement. They might ask you to make some deductions on your monthly expenses, if they notice some things that are not needed on your list; you should be able to explain to them why those things cannot be removed from your list, you will also prove that you are making efforts to get a new paying job.

STEP 3: SUBMIT

Your lender will want to confirm your financial crisis, provide them with your unemployment verification letter with detailed information. Follow up your lender until a negotiator or loan officer is assigned to your account, which you will work with till the end of the process.

STEP 4: WAIT

After you are assigned with a negotiator, you have to wait for approval, sometimes it takes several weeks but ensure you follow up with your negotiator to show that you are serious with your request.

STEP 5: RECEIVE

Once you are approved, a letter with detailed terms of the agreement will be drafted by the negotiator, with the forbearance period time frame, amount to be paid during that period, the interest rate of the amount owed and how to repay the outstanding balance after the period.

STEP 6: SIGN AND RETURN

If you are satisfied with the terms, sign the agreement form and return to the lender. Your forbearance period has commenced after submission. After this period your payments return to normal, with an additional payment to cover your outstanding balance.

Assuming you fail to meet up with the terms of forbearance, your home will likely go into foreclosure. This is the last step before you lose ownership of your home.

For legal advice and consultation,  as well as information regarding mortgage modification or mortgage mediation services Please give us a call for a free consultation to discuss your specific financial challenges during this difficult time. You can reach us at 425-452-9797 

 

How the Foreclosure Fairness Act Works for You

How the Foreclosure Fairness Act Works for You

The number of foreclosure listings in Washington State and all over the country is on the rise again, but there is hope as many homeowners have made it possible to hold on to their home through the Washington State Foreclosure Fairness Act.

The Washington State Foreclosure Fairness Act is little known by both homeowners and employees of mortgage holders. To have this protection work for you it is best to hire an attorney.

What many homeowners are unaware of is that there are many different modification programs they may be able to qualify for. These programs include the HAMP Tier 1, the HAMP Tier 2, the HAMP Standard, FHA Modifications, VA Modifications, Non-GSC Modifications, modifications that mirror HAMP, internal modifications, the National Settlement Act, Washington State Settlement with pick a payment program and much more.

There are many lawsuits against banks in the courts today for failure to adhere to these settlement programs. The problem lies with banks not telling homeowners about these programs or not even considering homeowners for these many various modification opportunities.

It is very important to know where the mortgage on your home stands and who is the actual owner of the loan on your home. Many people are unaware that the bank processing their payments may not actually own the loan. Where your loan is actually owned determines what modification programs you are eligible to apply for.

The Washington State Foreclosure Fairness Act allows a counselor or lawyer to work on your behalf to stop the foreclosure process while you try to apply for a qualifying loan modification. This law allows for a slow down of 6 to 9 months on the foreclosure process and gives time for legal help to find who owns the loan and just what programs you qualify for and your rights as a homeowner.

It is impossible to make any headway with the Washington State Foreclosure Fairness Act on your own as the program is set up for you to work through a housing counselor or attorney. The program sets up a series of mediation with the county through the Washington State Dept. of Commerce.

In many cases, you can lower your payments through a qualifying modification program. In some cases, payments may go up but interest rates can greatly lower without extending the term of your mortgage. Each case is determined by the income of the homeowner.

Related: Getting Mortgage Approval After a Loan Modification

If you are facing foreclosure and feel unheard please contact Advantage Legal Group immediately! We offer free consultations. Don’t settle for the bank telling you you will have to short sale or settle for a deed in lieu. Let us take a look at your case or free first.

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Bankruptcy or Foreclosure Looming?

Bankruptcy or Foreclosure Looming?

Bankruptcy or Foreclosure Looming?

Let The Washington Foreclosure Fairness Act Help you!

New Mortgage Foreclosure Program for the State of Washington.

A little known Mortgage foreclosure program went into effect in Washington State in 2011.  It is called the Washington foreclosure fairness act (FFA).  This program is for you if you need help paying your mortgage and need to renegotiate with your lender!  This program was designed to help homeowners facing foreclosure and lenders to reach a resolution about foreclosures.

The Washington foreclosure fairness act also helps homeowners in that it requires lenders to notify “borrowers” before the foreclosure process of the possibilities of counseling and mediation.

You need a referral by a Housing Counselor or an Attorney to use the Washington foreclosure fairness act program!  The reason for this is so that you will have representation when you sit down with the lender’s attorneys.  When you are referred to the program, you will then be in the Mediation process.  This process can be a very timely solution for you and your lender’s problems with the right people to support you.  Having a knowledgeable law firm like Advantage Legal Group on your side can help you find your best option in a timely matter.

Related: 4 Ways to Raise Your Credit Score in 6 Months

Stopping the foreclosure process.

Once you are in the mediation process for the Washington foreclosure fairness act program the foreclosure process halts!  You must act in “good faith” to stay in the mediation process.  You and your legal representative will go through the mediation with your lender and their legal representative.  The mediator will aid both sides to come up with a plan that will benefit both parties.

Remember, that if at any time the mediator believes you are not acting in “good faith,” your mediation can be canceled and your lender can proceed with a foreclosure.  Your legal counsel will help you to know what you need to do.  Examples of not acting in good faith: not turning in the appropriate paperwork on time, not paying the mediation fee on time, and not responding to e-mails or calls from the mediator.

Other Important Information

Free Seminars, Free Consultations, and Informative Videos!

If you have been thinking about bankruptcy or you are seeing a foreclosure in your future check out Advantage Legal Group to help with your legal options.  Advantage Legal Group offers free seminars in the Seattle/ Puget Sound area.  These free seminars cover legal options all the way from Foreclosure Defense Strategies, Mortgage Mediation, Deed in lieu of Foreclosure, Mortgage Modification, Short Sales, to the Washington State Foreclosure Fairness Act.  Attend these free seminars in Bellevue, Lynnwood, or Tacoma.  Attendees also learn about their legal options for their specific financial situation.  You are under no obligation to do anything by attending the seminar.  After the seminar, if you choose, you can schedule a free consultation with Seattle Bankruptcy Attorney Jonathan Smith to discuss even more specific their financial situations.

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Defense Against Foreclosure

Defense Against Foreclosure

Defending Against Foreclosure

If you are facing the loss of your home or fear that you may soon be facing a foreclosure, a law firm can help you to develop a strategy that may include defending against the foreclosure, negotiating a modification, refinance, short sale, or implementing a strategic default plan.  A Foreclosure Defense Law Firm assists clients in all stages of the pre-foreclosure and foreclosure process.

30 Days to Respond

It is important to act or seek assistance as soon as possible to ensure that you do not lose some of the many options you have when faced with a foreclosure.  There are deadlines in the foreclosure process as well as certain requirements that the banks must follow, in order to successfully foreclose on a home.  Once you are served with a summons and complaint from the bank, you have only thirty days to respond and defend against the foreclosure.

Defenses to Foreclosure

Challenge a foreclosure by bringing a defense such as unconscionability or lender mistake.  Homeowners and their attorneys are challenging foreclosure actions in many different ways.  Here are some of the most common defenses to foreclosure.

How to Raise a Defense to Foreclosure

Courts are sympathetic to challenges to foreclosure actions; attorneys are raising many different types of defenses.  Below is a description of the most common of these.

Common Foreclosure Defenses

  • The Terms of the Mortgage Are Unconscionable – It usually is not enough to simply claim that the foreclosure is unfair; rather, you have to come up with a specific justification for your position that has previously been recognized by the courts.

  • You Are a Service member on Active Duty – If a foreclosure is initiated while you are on active duty, you can automatically receive a nine-month postponement.

  • The Foreclosing Party Did not Follow State Procedures – If your challenge is successful, the court will issue an order requiring the foreclosing party to start over.

  • The Foreclosing Party Can’t Prove It Owns the Mortgage- If your mortgage has been sold and bought by many different banks, lenders, and investors, proving just who owns it can be difficult for the last holder in the chain.

  • The Original Lender Engaged in Unfair Lending Practices- You may be able to fight your foreclosure by proving that your lender violated a federal or state law.  Lenders violate TILA law when they do not make certain disclosures in the mortgage documents, including the annual percentage rate, the finance charge, the amount financed, the total payments, the payment schedule, and more.

  • The right to rescind the loan – the key remedy in foreclosure actions is the borrower’s ability to retroactively cancel or rescind the loan.

  • State-law remedies for “high-cost” loans – A few states have special protections for people facing foreclosure on “high-cost” mortgages.

  • The Mortgage Servicer Made a Serious Mistake – You may be able to challenge a foreclosure based on mistakes such as:

    • Crediting your payments to the wrong party.
    • Imposing excessive fees or fees not authorized.
    • Substantially overstating the amount you must pay to reinstate your mortgage.

To learn more about these defenses and other ways to avoid foreclosure contact a foreclosure Defense Lawyer.  A Foreclosure Defense Lawyer will:

  • Provide you with a free consultation
  • Review your documents and information
  • Outline a strategy to defend your home

Fear losing your home? Foreclosure looming?

Fear losing your home? Foreclosure looming?

You held out for this long but your lender has finally sent you the” letter.”  However, the letter talks about consumer debt counseling and mediation.  This is part of the Washington Foreclosure fairness act.  Lenders must inform you of your rights before a Foreclosure can be processed.  Bankruptcy is a valuable option to consider.  Understanding and knowing your options will help you to come out ahead.

Bankruptcies are on the decline?  You might think so as the economy recovers but bankruptcies are actually on the rise in many areas.  If you have recently been sent a letter from your bank or lending institution, it is time to contact an Attorney or consumer debt counselor that is recognized by the court system.

Whether you have been laid off, had medical issues with bills piling up, or just got in over your head with consumer debt, you are not alone.  Now you are afraid you are going to lose your home.  There are ways to help save your home.  Check out the New Washington program to help people just like you.  It is called the Washington foreclosure fairness act.  This act helps homeowners just like you to help are you negotiate with your lender.  It requires a wonder to notify you of the process before the foreclosure process starts.  The process includes consumer debt counseling and mediation with the lender.  You will need to have an Attorney or a debt counselor on your side to go into the mediation process.  Advantage legal group out of Bellevue can help you find your best option, walk you through the process, and hold your hand through the process.

It will become much clearer through the Washington foreclosure fairness act and with the aid of an attorney to be knowledgeable about your rights and responsibilities, and how to save your home.  First being in the mediation process actually stops the foreclosure.

Advantage Legal Group offers free seminars in Seattle and around the Puget Sound area.  These free seminars cover many options for distressed homeowners.  Knowing what options are available to you and what makes sense for your family will give you the confidence to go through the foreclosure process, mortgage mediation process, or short sales process.  These are only a few of the strategies that the seminar covers.  Understanding your financial situation and the types of strategies that are out there for you will help you to figure out your defense.  Is mortgage modification the option for you?  What is your best option, deed in lieu of foreclosure, mortgage modification, short sales, mortgage mediation, and what will your Foreclosure defense strategy be.

If after the seminar, you need more information Jonathan Smith a Seattle Bankruptcy  Attorney will schedule a free consultation with you to go over even more specific situations.

Additional Financial Resources:

 

The Foreclosure Fairness Act

The Foreclosure Fairness Act

The Foreclosure Fairness Act

A little known law helps protect homeowners from foreclosure even when their situation may seem dire. The Department of Commerce is trying to spread the word about this law and Advantage Legal is here to help.

The Washington State Department of Commerce put out a press release to let people know about this Act that helps primary residential owners go into mediation with banks via a counselor or lawyer and look at alternatives to foreclosure. It’s a great way for homeowners to get help without the frustration of getting lost in the paperwork.

What is the Foreclosure Fairness Act?

“The Foreclosure Fairness Program provides homeowner foreclosure assistance by offering free housing counseling, civil legal aid, and foreclosure mediation. The program, created by the 2011 Foreclosure Fairness Act, helps homeowners and lenders explore possible alternatives to foreclosure and reach a resolution whenever possible. The Act requires lenders to notify homeowners, prior to initiating foreclosure, of the availability of foreclosure counseling and the potential for mediation, and to participate in mediation with homeowners who have been referred to the Mediation Program. The program is funded through fees paid by financial institutions recording notices of trustee sale on owner-occupied residential real property in Washington state (some financial institutions are exempt from this fee).” [Source]

 

This Act is huge for homeowners who are scared of losing their home or frustrated with the process of trying to save it. This Act along with experts like those at Advantage Legal Group brings happiness and relief to many Washington families.

Each individual case is different but the Foreclosure Fairness Act and Advantage Legal were able to help one particular family who hasn’t paid their mortgage since March of 2015 and their unpaid amount plus their principal balance totaled approximately $511,488, with the help of the Act and Advantage Legal they were forgiven the amount of $256,488. WOW! That’s forgiveness of almost half of what they owed. They were also able to get their monthly payment cut almost in half and their interest rate went from 8% down to 5%.

These kinds of results are almost impossible to get on your own without the help of experts like Advantage Legal.  If you’re not sure if you qualify under this law,  you can go to advantagelegal.com or call their office at 1-877-mediation to get a free consultation to discuss your situation.

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For more information on related topics check out:

Should I File Bankruptcy?

What If I’m a Year Behind in My Mortgage Payments?

 

Where to Start in Mortgage Mediation?

Where to Start in Mortgage Mediation?

If you have no idea where to start with mortgage mediation and you’re on the brink of losing your home, there are options and steps to take immediately in order to save your home and reduce your mortgage.

Many people may not even know about the Washington State Fairness Act. This is largely due to the fact that banks and lenders won’t tell homeowners their rights and options and simply let the home fall into foreclosure.

Most banks want to push foreclosure out beyond the first of the year so over the last 6 weeks many of these notices have gone out, more than 3 times the amount we saw in summer. For those that are receiving, I notice now they will be foreclosed on until February or March. This is because lenders don’t want to be the bad guy around the holidays. The Washington state fairness foreclosure act forces banks to come to the table with the assistance of an attorney or a housing counselor in order to modify or mediate the current mortgage. Not even the state will inform people about it because they just don’t have the money to advertise this law, so many homeowners lose out on their home when that could be saved the mortgage mediation.

 

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Banks, housing counselors or bankruptcy attorneys negotiate to find some way that the homeowners can stay in their home and this is usually through mortgage modification. At Advantage Legal Group, many people have Artie tried to do this on their own and without a qualified housing counselor or bankruptcy attorney legally cannot be done. You must have one of these two mediators with you when negotiating with the bank according to the fairness act.

When you enter into mortgage modification you can save the homeowner hundreds if not thousands of dollars each year. One of the most recent examples was an Ocwen loan where the original payment was $2087 at an interest rate of 4.65%. Advantage Legal Group was able to negotiate a new payment of just $1100 at a new interest rate of 3.375%. This helps people to become current on their mortgage again and save their home.

Even if we can’t lower the payments significantly we sometimes can negotiate a lower interest rate. One recent loan through Bank of America with an FHA loan with an interest rate of 6.275%. Advantage was able to lower that to 2%.

If you’re struggling with what to do first, simply call Advantage Legal Group. We offer free over the phone consultations to find out if you qualify for mortgage mediation. If you’ve been told that you don’t have the right paperwork or documents or simply do not get a response from your lender, it’s time to make the move and contact a mortgage mediator or housing counselor necessary and required in order to negotiate your mortgage payment.

 

Start the Process or Learn More

MORE: Where Do I Begin with Mortgage Mediation?

Mediation is when the lender and the borrower sit down with a court-ordered mediator, a third party, to look at options. Modification programs are often limited and hard to execute. Mediation is a good way to play it safe when you’re almost out of options to help cure any deficiencies in the process. With so many delinquent borrows currently nationwide, there are many opportunities for mistakes to be made. Borrowers can also get lost in the process and mediation personalizes for expedition and avoidance of mistakes.

Once the lender initiates foreclosure, you have the right to request mediation. The lender must send a “request for foreclosure mediation” form. You then have 25 days to complete the form and file it with the circuit court in the county or city where your foreclosure has been filed to have your request granted. You must also send the form to the attorney handling the foreclosure for your lender.

THINGS TO KNOW:

1) a non-refundable fee of $50 must be paid by homeowners to the circuit court when they file a request for mediation.

2) The fee and the “request for foreclosure mediation” form must be sent to the same circuit court that your foreclosure was filed in.

3) This is your one and only chance to request foreclosure mediation. If you do not submit your fee and form within the 25 days, you will NOT be given another chance.

4)Homeowners must be living on the foreclosed property to participate in the mediation program. It must be your primary residence. The mediation program is not for owners of foreclosed, rental or commercial properties.

You can get excellent legal help from Advantage Legal Group. Contact us today and check out our blog for more information and related topics.

For more information on related topics check out:

Should I File Bankruptcy?

What If I’m a Year Behind in My Mortgage Payments?

How Do I Know if I Qualify for Mortgage Modification?

How Do I Know if I Qualify for Mortgage Modification?

Surprisingly most people in Washington state don’t even realize that they can qualify for a mortgage modification or mediation. Mortgage payment each month is causing you more and more stress or you’re simply not able to make the payment, there are options. Washington state has Washington State Foreclosure Fairness Act, which was implemented several years ago helps Washington homeowners modify their existing mortgage in order to stay in their home.

Like to stay in your home there are options but there are also qualifications. Banks will not tell homeowners that there are options oftentimes considered a better “dirty little secret”. Banks have not financially incentivized homeowners to modify their loan in most cases, and this is where a mortgage lender needs to come into play. Homeowners cannot modify their own mortgage unless the letter asking for a straight refinance. Often, homeowners that are already struggling making their mortgage payment cannot qualify for refinance. This is where attorneys such as Advantage Legal Group can come into play. Attorneys or housing counselors must modify and mediate the mortgage refinance or modification on behalf of the homeowner. This really is the only caveat and can be difficult for a lot of homeowners to understand. Often get asked why they cannot simply go to their bank and ask for modification on their own. But with Washington State Foreclosure Fairness Act, there is a moderator on behalf of the homeowner that can handle and facilitate the moderation between the homeowner and the bank.

The downside is that the only way to qualify is to actually stop paying your mortgage. While this is often the case for a lot of homeowners, some may find it difficult to do so without food and utilities in order to make the mortgage payment. This is where the moderator needs to step in and provide alternate options. Once the homeowner is unable to pay and this is a payment, they can trigger events under the current law which provides the homeowner an option to elect to enter into mortgage mediation. The homeowner will receive the “Notice of Pre-Foreclosure Options” and after this will have 30 days to respond to elect to request a meeting with the bank in order to discuss the situation, however, this must be done with a moderator as in a housing counselor or attorney. You can meet with the bank on your own but homeowners cannot request mortgage mediation by themselves. This mediation can only be requested through a HUD counselor or mortgage mediation attorney.

(See How Advantage Can Help You)

If the homeowners do not want to enter into the mortgage ocean the bank will usually proceed to the second notice, “Notice of Default” 90 days after the issuance of the first notice. At this point that you can still request mortgage mediation but must be negotiated by the HUD counselor or an attorney. After notice of default is an issue they post the third notice, “Notice of Trustee Seller”. This is if the homeowner has not requested a modification. The bank will continue on the foreclosure without the homeowner does something to stop it.

  • In order to qualify the homeowner must complete the package for loan modification including submitting paycheck stubs, budget, documents that the loan servicer requests and a hardship letter stating why you are unable to make their mortgage payment.
  • The property must be the primary residence, meaning it cannot be an investment or rental property.
  • Homeowners to choose modification if they are unable to refinance. Allows a temporary briefing room to get through financial hardship.
  • Homeowners must also have adequate debt to income ratio. Lenders prefer as low as 36% but can go as high as 45%.

If you’re concerned you may not qualify contact Advantage Legal Group today to discuss your options! You might be surprised at how affordable a mortgage modification really is, even through an attorney. And of course, you’ll have the peace of mind knowing you can keep your home.

Contact them today!

Who Says Life’s Not Fair? Two Things to Know About the Fairness Act

Who Says Life's Not Fair? Two Things to Know About the Fairness Act

Who Says Life’s Not Fair? Two Things to Know About the Fairness Act

Okay. Okay. So, life’s not fair. It’s true. However, when things come around like the Washington Foreclosure Fairness Act, life seems to seem a little fairer, a little brighter. This act or law helps bring homeowners back from the brink of foreclosure by forcing lenders to enter into face to face negotiations. There are two things to remember about the Washington Foreclosure Fairness Act:

1) You MUST have representation to advocate for you. You cannot make use of the Washington Foreclosure Fairness Act without good representation. Why? Because you must have someone ( your attorney/representation) make a referral on your behalf so that Washington State commerce stops the foreclosure long enough for you to enter into negotiations with the bank’s lawyers. The reason you can’t do it yourself without an attorney is because they want you to be prepared. This is an adversarial process. The attorneys on the other side are not there to help you, therefore it’s imperative to have someone there who is.

2) It often takes more than just one meeting. The Washington Foreclosure Fairness Act actually only provides for one three hour mediation session, but it usually takes two or three of these sessions. In these sessions your attorney presents a package to your bank’s lawyers and lets them know how much you make for a living and what you can afford. They then negotiate back and forth until an agreement is made.

Get help. Get current. Get a better interest rate. Get a secure future with Advantage Legal Group and the Washington Foreclosure Fairness Act.

SEE ALSO:

Washington Fairness Foreclosure Act

Bankruptcy Myths

Should I File Bankruptcy?

Why Should I Use a Bankruptcy Lawyer?

Bankruptcy and Divorce

 

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