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  • Dennis McGrath

Are you in foreclosure??? Do not panic, save your home!

Updated: Sep 2, 2020

If you find yourself behind on mortgage payments, the bank will eventually try to foreclose on the property to get their money. Do nothing and its almost inevitable that you will lose your home to foreclosure. But if you let experienced counsel help you to put up a fight, you might be shocked by just how good of an outcome you can achieve.


At MK Law, we have experience at fighting major banking institutions. We know the best defenses available in any given situation and can help you save your home. Let’s talk through a few foreclosure defense strategies that may apply to your case if you find yourself facing foreclosure.



If You Want to Keep your Home...

If you want to keep your house, there are most likely options to help you do so, including:

  • Fighting the Foreclosure – Arm yourself with a strong legal team and go to battle. The Courts are overwhelmed with foreclosures and the banks do not want to take your house, they just want an option to be paid. Additionally, during the process, you can continue to live in or rent the property without making payments to the bank.

  • Seeking a loan modification – Banks that fear a drawn out foreclosure may agree to changes to rewrite your loan. It is less expensive for them to take this route. They would prefer to lower your interest rate, extend the payment schedules or reduce monthly payments.

  • Refinancing the loan – There are lenders out there that will finance unconventional loans.

  • Seeking forbearance – Many lenders will agree to delay foreclosure proceedings, and some will agree to cancel sale dates, which will allow you more time to decide on the best exit strategy.

If You Don’t Want to Keep your Home...

Failure to pay your mortgage can result in the bank issuing negative credit reports, taking back the home, and collecting a deficiency judgment, which means you could lose your house and still owe the bank money. Even if you don’t want to keep your property, putting up a strong foreclosure defense can help you negotiate from a position of strength and avoid the full economic hardship of a foreclosure.

Here are some effective defense strategies if you don’t want to keep your home:

  • Short sale of the property – A bank can agree to accept less than the total amount owed on the loan to release the mortgage, but the borrower needs to find an investor or buyer willing to make a reasonable offer to the bank. Depending on the lender some borrowers could have their debt forgiven if the short sale closes. However, beware of banks that demand a new promissory note or a deficiency judgment and keep in mind that you do not have to close the short sale if the bank refuses to waive the deficiency. We have buyers lined up to purchase short sale properties

  • Consider a Deed-In-Lieu – In a deed-in-lieu scenario, the bank avoids litigation and the borrower agrees to sign over title to the property. In this instance, some lenders will waive their right to a deficiency judgment. The may even offer you a cash-for-keys option, where they pay you to leave the home as an incentive to avoid litigation.

Foreclosures can be lengthy and emotionally fraught processes, which means you have time to set up a strong defense – and for that, we’re here to help. If you have any questions about the foreclosure process, please call us at GoMKlaw.com for us to discuss your options.

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