Foundation settlement, which is a term used to describe the sale of a property that has foundation damage as the cause of its collapse, is an important part of the foreclosure process. In most cases, a borrower will have a lawyer who represents him or her in a foundation sale.
Because the litigation services of a bankruptcy attorney are required, most people choose to retain such an
attorney for their foreclosure proceedings. However, some borrowers may have a mortgage lender who is willing to represent them in a foundation settlement, which may not be what you expected. Here are some of the reasons why this may be the case.The first reason that your mortgage lender may not represent you in a foundation settlement may have to do with the legalities of such a transaction. If your lender does not trust that you and your lender can come to a valid settlement, they may be able to seek a temporary restraining order from a federal judge to prevent you from initiating a foundation settlement.
Another reason that your lender may not be willing to provide you with representation is that they fear that such a transaction could cost them a significant amount of money in estate plan fees. Some homeowners have even been refused by banks that charge hefty estate plan fees because they failed to present sufficient proof that a settlement is in the best interest of the client.
Lenders often make fraudulent claims about the value of their properties and may be unwilling to negotiate a reasonable amount. If your lender makes such claims, you should proceed with caution. You may end up being sold on an appraiser's report that you cannot verify or with an estimate that is less than the real value of your home.
Once you have made the decision to hire an attorney, you need to make sure that you are working with a lawyer who has a deep understanding of the laws governing mortgage lending and the foreclosure process. Your mortgage lender may attempt to manipulate the terms of your loan in order to get the best possible outcome for him or her.
However, the financial institution is not required to uphold the terms of the mortgage; it is the responsibility of the homeowner to remedy the situation. In some instances, homeowners are required to pay a fee to the financial institution even though it is the homeowner who came to them with the problems.
When you hire a lawyer, you need to find out how much the lender is willing to pay you so that you know whether your legal fees are within the lender's budget. This also gives you a good idea of whether or not you want to pursue a lawsuit against the mortgage lender.
You can also find out if the mortgage lender has any repayment agreement provisions in place for your estate plan fees. If they do not offer you a reasonable clause to protect your interests, you may need to consider pursuing a lawsuit.
Mortgage lenders are not legally bound to honor the debt, but many have fraud clauses in their contracts that allow them to sell your property before allowing you to complete your estate plan. Some mortgage lenders provide a second loan to pay off the debt before selling your home.
Lenders also commonly offer a thirty-day grace period that allows them to decide whether to sell your home or not. If they refuse to sell, they can then put the property up for sale through a public auction.
You should work with an attorney who has a solid understanding of the laws governing mortgage lending and the foreclosure process so that you are aware of all of the laws regarding your estate plan fees. You should also consult an attorney if you are already working with your mortgage lender in an attempt to sort out your finances.
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