FORECLOSURE IN YOUR STATE

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1 HOW TO PREVENT FORECLOSURE IN YOUR STATE Michael P. Coyle, Esquire Maryland Bankruptcy Attorney

2 Have you slipped behind on your mortgage payments? Are you receiving regular notices from your lender regarding your situation? With each passing day, you are moving closer and closer to foreclosure. There is nothing simple about preventing foreclosure. Regardless of where you live or what type of financial situation you are in, if your lender has sent you a notice of foreclosure it should be taken seriously. Note: rather than deal with this alone, hoping you make the right decisions, it is often best to consult with a bankruptcy attorney. A qualified legal professional can help you with every step of the process, from answering letters to mediation and everything in between. 2

3 What Next? Just because you are having trouble making your monthly mortgage payment doesn t mean you are going to lose your home. What it does mean is you have to make some changes. Here are several strategies to consider: 1. Negotiate with your lender. It is a misconception that mortgage lenders would rather repossess a home than service the loan. You may be surprised at what you hear once you are open and honest with your lender, letting them know that you need assistance. They may be willing to modify your loan to make your payments more affordable. 3

4 2. File for bankruptcy. This may not be a decision you want to make, but remember one thing: you need to do what is best for you, your finances, and your home at the present time. If this means bankruptcy, it is time to learn more about Chapter 7 and Chapter 13. Once again, this is a complicated process, so you don t want to go at it alone. You are better off working with a bankruptcy attorney who knows what to expect and how you should move forward. 3. Sell your home first. Unless you are married to the idea of staying in your home, this is something to consider. If you sell your home before it is repossessed, you never have to concern yourself with the foreclosure process. Note: this may be difficult to do if your loan is underwater, meaning you owe more money than the property is worth. If you find yourself in this position, it is time to negotiate a short sale with your lender. 4

5 Communication is Key What do you notice about the three strategies detailed above? With each one, communication is essential to your success. You should never run and hide from your lender, as this is only going to make things worse. They cannot help you better your situation if you are avoiding all communication. The same holds true with a legal professional. If you need help, reach out to an attorney who can put you on the right track. Keeping to yourself and attempting to do everything on your own could make your situation worse. 5

6 Questions to Ask an Attorney If preventing foreclosure is on your mind, here are some questions to ask an attorney: Is it too late to prevent foreclosure? Is bankruptcy my only option? Can you help me better communicate with my lender? Are there alternatives to foreclosure worth considering, such as a mortgage modification? Are there steps I can take right now to improve my chance of preventing foreclosure? As scary as it may be, there are things you can do and steps you can take to prevent foreclosure. This is challenging and stressful, but you should always keep your eyes on the finish line. If you make the right decisions with the help of an attorney, you may be able to stay in your home for the long run. 6

7 About the Author Michael P. Coyle, Esquire Mr. Coyle is one of the founding partners of Chaifetz and Coyle. Prior to Chaifetz and Coyle, Mr. Coyle was a law clerk to The Honorable Robert J. Yock. Mr. Coyle then was an attorney with several of the largest and most prominent law firms in the country, before starting his own practice. Mr. Coyle graduated summa cum laude from The Washington College of Law (American University) in 1994, and was a member of The Law Review. Prior to Law School, Mr. Coyle graduated with a BA in Government from Franklin & Marshall College, Lancaster, PA. Mr. Coyle s practice specializes in bankruptcy, foreclosure defense, general litigation, civil rights, and employment discrimination. Mr. Coyle manages the Bankruptcy Department of Chaifetz & Coyle Alexander Bell Drive, Suite 200 Columbia MD Phone: (410) Fax: