George Smith The Lawyer That Sues Banks

If you are reading this, chances are you closed on a mortgage loan without a lawyer.  Almost no one used a lawyer when they refinanced their home and many chose to forego legal representation at closing on home purchases. 

An ounce of prevention is still worth a pound of cure.  If you see a foreclosure coming because you know you won't be able to continue to  make your mortgage payments or you are receiving threatening letters from the bank, or worse yet, been served with a lawsuit, it would be smart to take the time to get some legal advice and assess your options.  It would be good to know if you have a defense, a claim against the bank or the mortgage broker that handled your loan, and how long you can stay in your home without making a mortgage payment.       

It always makes sense to prepare for the "worst case scenario." Not every case is a winner. You should have a Plan B regardless.  How long can you stay in your home before you are evicted?  What, if anything, can you do to prevent that?  Is a loan modification a viable option?  How can you protect yourself and your family?  All of these questions need answered.  Fore warned is fore armed.  

It may make sense to consider filing bankrupty at some point.  Bankruptcy is an important part of Plan B strategy planning.  Bankruptcy stops all court proceedings including foreclosure proceedings and sheriff's sales of homes.  If you lose the foreclosure and the bank sells your home, it will generally get judgment against you for the difference between what you owed and the sale price of your home at public auction.  If it chooses to do so, once it gets a judgment, it may garnish your wages, attach your bank accounts and seize assets not exempt from attachment. 

Having a foreclosure on your credit record is the worst hit you can take to your credit reputation--worse than bankruptcy.  Part of your planning should include repair of your credit reputation--or, if you address the sitution quickly enough--prevention of injury to your credit reputation.  Good credit is an asset.  People with good credit get better loan terms (lower interest rates, lower payments, and higher loan-to-value (LTV) on everything.  Bad credit, however, can be repaired over time.



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