Among the worst consequences of debt is losing your home. Luckily, several legal remedies exist to pause or stop foreclosures in Tennessee. The most appropriate alternative depends on your situation.

And even when a foreclosure is inevitable, it is critical to minimize its impact when you can. Whatever happens to your home, you need a bankruptcy law firm in Kingston to guide you at every stage.

What Legal Rights Can an Attorney Help Me Protect in a Tennessee Foreclosure?

Before the 2010 foreclosure crisis, the laws were more favorable to the foreclosing lenders in Tennessee. But now, the processes are more regulated, and the borrowers are also more protected. For instance, they have a right to:

  • Get any excess money from the foreclosure
  • File for bankruptcy
  • Pay off the loan and prevent the foreclosure
  • Get current with the loan repayments and prevent the foreclosure
  • Receive special protection if they are in the military
  • Receive notice before the foreclosure
  • Receive a pre-foreclosure breach letter
  • Apply for loss mitigation

Knowing your rights helps you handle a foreclosure situation with the least possible anxiety. Based on the situation, Kingston debt collection defense attorneys can advise you on the best way to protect yourself.

In What Ways Can an Attorney Stop a Foreclosure?

A borrower has several options in stopping a foreclosure in Tennessee. But it takes the expertise of a knowledgeable attorney to know the right alternative in each situation.

Reinstating the Loan

Only high-cost loans have a statutory right to be reinstated. However, a Deed of Trust can provide reinstatement rights. If this provision is available in your contract, it is important to check its deadline first.

Redeeming the Property

This involves paying off the loan before or after the foreclosure sale. Borrowers can do this up to two years after the sale. Just make sure that you did not waive your redemption rights in your loan application documents.

Filing for Bankruptcy

The quickest way to stop a foreclosure is to file for bankruptcy. Chapter 13 might save your home, and Chapter 7 might delay the sale for several months. A foreclosure lawyer in Tennessee can advise on the most appropriate alternative.

How Does the Federal Law Protect Me in a Foreclosure?

Federal law requires loan servicers to assist you with loss mitigation. Thus, they should contact you or attempt to reach you to discuss alternatives such as a repayment plan, forbearance, and loan modification. The servicer should try to reach you on the phone within 36 days of missing the payment and 45 days in writing.

In an attempt to adhere to the Federal mortgage servicing laws, the loan servicer must also adhere to the Fair Debt Collection Practices Act requirements. So, if you have asked them not to contact you, the lender has the responsibility of respecting that. They also can’t engage you in loss mitigation discussions if you have filed for bankruptcy.

Do I Need an Attorney in a Judicial Foreclosure?

A judicial foreclosure begins when the lender files a lawsuit against you. Failure to respond appropriately might see you lose your house in Tennessee. But these mistakes are rarely made when you work with seasoned debt collection defense attorneys in Kingston.

The lender can get a default judgment if you fail to file your written response. It will be in your best interest to respond in the shortest time possible to avoid losing your property unfairly. And after a review of the evidence brought forward, the judge could determine whether the loan servicer should auction the house or not.

What is the Work of an Attorney in a Non-Judicial Foreclosure?

Many lenders prefer non-judicial foreclosure because it is less costly and quicker than the judicial alternative. But just because it is done out of court doesn’t mean you won’t need an attorney. A set of procedures must be followed to safeguard your legal rights.

For instance, your house cannot be sold less than 120 days before the first day of the default. The lender also has to send a copy of the notice of sale by mail before or on the day of publication. After that, they can publish the notice in a newspaper at least 20 days before the foreclosure. If the county has no newspaper, the notice should be displayed in several public places 30 days prior.

Do I Still Need a Lawyer During the Foreclosure?

Auctioneers usually hope to recover the remaining debt owed along with other costs and fees. They might accept a bid that is higher, less, or equal to the total debt owed. If the amount recovered is less than what is owed, the lender can sue the borrower for the difference.

But if the highest bidder offers more money than the total debt, you could be entitled to the excess money. If you have an experienced Kingston attorney present in the foreclosure, they can ensure that you are not short-changed.

How Can an Attorney Help Post-Foreclosure?

Foreclosure matters don’t always end when the house is sold. Sometimes, it could drag past the auction date. This often happens when the mortgage debt exceeds the sale price at the foreclosure. Lenders can file a lawsuit against you to recover the difference.

A Tennessee bankruptcy attorney can represent you in court and ensure that your rights are preserved. A skilled attorney can make sure that the difference is calculated appropriately. Ideally, the fair market value should be used to work out the deficiency.

Attorneys Providing Legal Assistance and Advice

Borrowers in Tennessee can enjoy legal protection when facing a foreclosure. However, it is easy not to enjoy these protections if you are not conversant with them. Having an attorney by your side ensures you are informed of all your legal options at every stage of the foreclosure process.

Our attorneys have a wealth of experience, knowledge, and skills. We can enlighten you on what the law says about every legal situation in Tennessee. Speak to us today to discuss your family matters.