Are "mortgage foreclosure" the scariest words in the English language? Maybe; and for good reason. When a mortgage lender forecloses its goal is to strip you of all right, title, and interest. Worse still, banks may choose to foreclose even if you've made all payments on-time and in full. Given these facts and the backdrop of the subprime mortgage scandal, a couple of questions come to mind:

1. How can you defend yourself when mortgage companies can act at will? The first step: read your motgage and understand its limitats.


2. Do you have to read every word of the mortgage before signing it? Frankly most people don't read their mortgages before signing them. Even those who do read their mortgage often don't understand the terms. Sadly, mortgages aren't written to be understood. The average mortgage is written in legalese, ye King's olde English, and technical terms that only a land surveyor could love.


3. How do you interpret the mortgage? Obv iously it helps to have a lawyer by your side when closing on a home; but that alone will not solve the problem. Even if your lawyer finds something about the note or mortgage that isn't in your interest, lenders will not allow a single word to be altered for fear that everyone else will also want a deal. In short, if you do not like what your mortgage says that's just tough. Your lender will generally not budge an inch.


4. How do you find a mortgage that is a good fit? Actually, most people never find the right loan: they just sign what is presented to them and hope that they can stay ahead of the payment obligations. However, if they are signing onto a subprime mortgage homeowners can expect sharp interest hikes and steep penalties sooner or later. That rise can be so sharp that the homeowner can barely keep up. At that point they're just one paycheck away from having to pay late, and just one late payment away from foreclosure.


5. What about help from the government? Many people believe the Federal Government will help through programs such as H.A.M.P. and N.A.C.B.A., or that mortgage modification through their bank is an option. But the truth is neither the government nor the courts can force a lender to alter the terms of a mortgage because it is a voluntary contract, and the United States Constitution protects the right of every person and business to life, liberty, and property. In this case, your property.

Overall, we welcome the chance to talk about your mortgage. Whether you are considering modification, a short-sale, a deed-in-lieu, or facing foreclosure, our office can help guide you through this legal minefield. Call us for a no-cost phone or office consultation and take a look at the helpful links available through our website.