WE UNDERSTAND that home owners can face tremendous stress when facing a home foreclosure. At Pearson, Butler & Carson, PLLC, our foreclosure defense attorneys have worked with several home owners in an effort to stop foreclosures. In the event of a home foreclosure, our attorneys can provide legal options to help you keep your home.
Five Ways to Stop Utah Foreclosures
Our Utah foreclosure attorney team can offer 5 remedies for homeowners facing foreclosures in Utah. Our South Jordan foreclosure attorneys will contact your lender and try to negotiate a repayment plan or loan workout. The sooner that our attorneys contact the lender in the process increases the likelihood of reaching an agreement with your lender to save your home and credit.
- Forbearance Agreement
- Loan Modification
- Short Sale
- Deed in Lieu of Foreclosure
- Chapter 13 Bankruptcy
Utah Foreclosure Law
Loan Modification: a Utah loan modification occurs when the lender modifies the delinquent mortgage in an effort to help the borrower to have a more affordable mortgage and to avoid foreclosure. Our South Jordan foreclosure attorneys have successfully negotiated loan modifications.
Forbearance Agreement: a Utah forbearance agreement is used most often when a borrower receives a Notice of Default as a result of a short-term financial or health problem. The forbearance agreement delays or reduces house payments for a short period of time and delays the also delays the lenders legal actions against the borrower, but with the lender and borrower agreeing that at the end of the period, another option will be used to bring the mortgage account current. Again, it would be advised to have one of our Utah foreclosure attorneys review the forbearance agreement to assess potential legal liability by the borrower.
Short Sale: a Utah short sale occurs when a loan modification or short sale option is unavailable and the borrower is upside down on his mortgage payment. The lender consents to the sale and takes a loss. The borrower lists his house and presents offers to the bank. In a traditional house sale, the home owner chooses which offer to accept. In a short sale, the bank chooses which offer to accept. The Utah foreclosure lawyers at PEARSON, BUTLE & CARSON can review the short sale documentation to assess potential deficiency liability on behalf of the home owner short selling the property.
Deed-in-Lieu of Foreclosure: a Utah deed-in-lieu of foreclosure occurs when the borrower voluntarily delivers a deed which conveys all interest in property to the lender in lieu of a foreclosure proceeding. The conveyance partially or fully releases the borrower from personal indebtedness as a result of the loan in default and avoids the foreclosure proceedings. The lender saves time to repossess the property. But the lender will not typically accept a deed-in-lieu of foreclosure if the borrower is upside down on his mortgage in relation to the property value.
Chapter 13 Bankruptcy: a Utah Chapter 13 bankruptcy is primarily used to stop Utah foreclosures. The borrower must have a steady income and file a bankruptcy petition before the property sale date. Once the bankruptcy is filed, the borrower proposes a plan to repay the delinquent mortgage amount and resume paying regular mortgage payments. The bankruptcy courts can sanction a forced loan modification if the borrower presents evidence that he cannot afford the current house payments. Our South Jordan bankruptcy attorneys have a lot of experience helping home owners file Chapter 13 bankruptcies.