Foreclosure Defense

What can the Attorneys at Arcadier and Associates do for me in a Foreclosure Defense?

In a Foreclosure Defense, proper legal representation can buy you time, modify your interest rate, reduce your monthly payments, and help you reduce the possibility of having an excess judgment entered against you. Additionally, we can take advantage of any government programs that can help ease the financial burdens associated with meeting your mortgage obligations. Having attorneys who are also experienced in bankruptcy law and collection law is also very helpful.

At Arcadier and Associates, we have been doing foreclosure defense since 2006. The cost of a foreclosure defense is very affordable. We offer payment plans and most types of residential foreclosure defenses are done on a flat rate basis of $1,600.00.

For this one-time fee, Arcadier and Associates will represent you in court, give you the proper legal advice, assign an attorney to work specifically on your case, and represent you throughout the litigation process including attending all mediations with you.

What is a Foreclosure?

Foreclosure is the legal path adopted by a lender (also called mortgagee) in order to recover the balance amount of the loan taken by the borrower (also called mortgagor) by initiating the sale of the asset which was pledged as collateral for the loan.

The debt incurred upon the non – payment of the loan where a collateral has been legally agreed upon, is called a secured debt. There are provisions which allow for the mortgagor to manage finances and repay such kinds of debts over an agreed time period.

There are a number of ways by which a foreclosure can be brought about, depending upon the clauses and agreements written in the contract or deed of trust upon which the loan was given.

In most cases, liens and considerations are available which allows the mortgagor to extend the period of repayment and adjusting the monthly payment amount to help make the debt more manageable. At the same time, an acceleration clause may be present in the agreement which allows the lender to declare the entire debt to be payable and due, should the terms of the mortgage be broken.

How is a foreclosure carried out?

Each agreement signed during a loan may have its own unique clauses agreed upon by the lender and the borrower. However, broadly speaking, a foreclosure may be initiated and carried out in two ways:

• Judicial foreclosure (also called strict foreclosure): This is initiated by the lender by filing a suit on the borrower and allowing the court to intervene. Once a ruling has been passed in favor of the lender, the property pledged as collateral is auctioned under the supervision of the county sheriff. This allows protection of equities attached to the property in cases where the value of the collateral is less than the debt. However, if no buyer is available, the lender receives ownership to the property.

• Non-judicial foreclosure: The process of foreclosure in this type is generally dictated by the clauses agreed upon by the lender and borrower in the contract. This method generally avoids the involvement of the court and is considered less traumatic to the defaulting borrower.

  The lender sends a NOD (Notice of Default) to the defaulted borrower, stating the intent to sell the property in accordance to the recommendations by the law statute. The auction or sale of the property may be initiated by the lender and may also participate in the process of bidding for its purchase.

Managing a foreclosure

The right to redemption is an equitable right which endows the borrower with powers to help save or retain their property. The borrower, may file for bankruptcy and avail the provisions in Chapter 13 to help manage the debts.

In some cases, the validity of the debt may also be challenged by the borrower to stop foreclosure and in turn, may also sue for damages. However, the borrower may be required to sign a bond which protects the lender from cases where the attempt to stop foreclosure is to evade debts.