Lehighton & Carbon County Mortgage Issues Attorney
Experienced Carbon County lawyer helping you save your home
If you’re a homeowner, chances are your house is your most significant, valuable and important investment. At the Law Office of Adam R. Weaver, Esq. our experienced Lehighton & Carbon County mortgage issues attorney helps homeowners every day avoid foreclosure and save their home through loan modifications, Chapter 13 bankruptcy and other means. See below for just some of the ways the Law Office of Adam R. Weaver, Esq. can help with your mortgage issues, and give us a call at 570-818-4888 to schedule a consultation with our attorney.
Avoid judgment liens
If another party has sued you and won a judgment against you, they may try to enforce that judgment and collect on it by recording a lien against your property in the amount you owe. This type of lien is known as a judgment lien. With a lien on your house, you won’t be able to sell it without paying off the lien, and the lienholder may even try to force you into foreclosure. Fortunately, judgment liens can be avoided (gotten rid of) in a Chapter 7 bankruptcy if the following facts apply:
- The lien is based on a money judgment obtained in court.
- You are entitled to claim the equity exemption in your bankruptcy.
- The lien would cause you to lose some or all of that equity exemption if the home were sold.
Your bankruptcy attorney can advise you on lien avoidance in your case and guide you on how to avoid a judgment lien in your Chapter 7 bankruptcy.
Adjust your mortgage to reflect the home’s value
Another mortgage issue many homeowners face is that they owe more on the mortgage than their home is worth on the market. This can happen when home values plummet due to economic downturns or other factors after you bought the home. If more than 40% of your income is going toward your mortgage payment, you may be a good candidate for a loan modification or workout. Also, there are ways to adjust a burdensome mortgage in a Chapter 13 bankruptcy. For instance, the bankruptcy court can cramdown the mortgage balance to where it more closely reflects the home’s actual market value. Additionally, if you have a second mortgage but are already underwater on the first mortgage, that second (or third) mortgage is basically unsecured and can be discharged in bankruptcy through a process known as lien stripping.
You can also find yourself upside down on your loan if you bought an adjustable rate mortgage that reset at a much higher interest rate, either once or multiple times. If you were tricked into an unconscionable adjustable rate mortgage such as an Option ARM without being given the required disclosures and having the terms of the loan explained to you, you may have recourse against the lender under Pennsylvania and federal predatory lending laws.
Dispute the debt; Reinstate the loan
There may be other options available to you to deal with mortgage issues as well. For instance, if you dispute the amount the lender says you owe, you can take the case to court and force the lender to provide proof of their claim and document the arrearage. Creditors are sometimes unable to do this when they are not the lender who originated the loan but rather some third party who bought the debt somewhere down the line. Another option for a mortgage in arrears is to reinstate the loan with a lump sum payment of the total missed payments, in order to keep the home from being sold at a sheriff’s sale. Remember that a Chapter 13 bankruptcy can stop foreclosure as well and help you get current on payments and cure any default.
Call Lehighton & Carbon County Mortgage Attorney Adam Weaver for Help with Mortgage Issues
For help with mortgage issues on your home or other property in Carbon County, Lehigh County or Schuylkill County, call the Law Office of Adam R. Weaver, Esq. in Lehighton to discuss your options with a skilled and knowledgeable mortgage issue attorney.