Attorney Michael Daiello shares insights into options to avoid foreclosure when you can’t pay your mortgage.
“I have received a number of phone calls over the past several weeks about the duty of landlords to pay lenders on mortgaged properties. The obvious best outcome is when borrowers and lenders work together for a reasonable solution. But what options are available if negotiations are unsuccessful? Does the current environment trigger a “force majeure” event under a lending agreement?
In spite of the lockdown, there is no general law that grants a borrower entitlement to cease payment. However, the language of any Note, Mortgage or Security Agreement may vary from case to case.
Failing to pay a mortgage will eventually result in a lender initiating a foreclosure action. A property owner receiving a notice of foreclosure often wrongly assumes there’s nothing they can do. Some of the options include applications for modifications of the mortgage, a short sale, a deed in lieu of foreclosure or fighting the foreclosure case in court.”
This month’s guide is a quick reference sheet of potential options for foreclosure defense. Please share this month’s guide with any small businesses or professionals that are concerned about foreclosure.
For more information on how to avoid foreclosure whether it’s your primary residence, vacation home or an investment property, visit FightTheBank.org and let’s talk. I’ve been helping home owners successfully avoid foreclosure and negotiate debt forgiveness since 2008. #fightthebank #phillymarketminute