If you’re having financial trouble and haven’t yet paid off your mortgage, a foreclosure lawsuit can be a very real and formidable risk. While finding yourself in such a situation is scary, there are some legal rights according to the state, with which you can protect yourself and your home.

With this foreclosure lawsuit guide, you can stay informed on what to do if you find yourself in such a situation, and how to protect your assets. Please keep in mind that this article is for educational purposes only and not meant as a substitute for legal advice.

Consult With Your Attorney

Step one in any kind of legal situation is to consult with an experienced attorney who can explain the circumstances to you and let you know what rights you hold. With an expert by your side to review your case, you can formulate a strategy on what to do.

Respond to the Lawsuit

Mediation can help during a foreclosure lawsuit

Person handing contract to another

Responding to the lawsuit in time is also important. Make sure to talk to your attorney about it, and decide if you want to contest. Include any defenses you have, such as if you believe there have been any violations of the mortgage agreement.

Make sure you send a copy of your answer to the other party as well.

Attend Mediation

In case of a foreclosure lawsuit, both parties can choose to meet with a neutral third party called a mediator who helps them come to a mutual agreement. If you’re at risk of losing your home, you may want to attend mediation to find a solution that benefits both parties.

Loan Modification

If you’re having trouble with loan payments, a modification can help. This modifies the terms of the mortgage itself so it becomes more affordable, allowing you to make your payments in time. This could work by reducing the monthly payment, extending the loan term or reducing the interest rate.

By making your loan more affordable, your home remains protected.

Sell Your Home

In an extreme situation, you may have to sell your home if you find that you can’t afford to keep it. However, it’s best to consult your attorney before you make this decision, since there may be ways to turn the situation around in your favor and protect your assets.

File for Bankruptcy

Foreclosure lawsuits are usually a result of falling behind on your mortgage payments – and most often because of financial trouble. Filing for bankruptcy puts an automatic stay on the legal process, which allows you to negotiate with your lender, mediate and come to an agreement.

It could also allow you time to catch up on your missed payments and get back on track.

If you’re looking for help dealing with a foreclosure lawsuit in Texas, feel free to visit the Office of Joel Gonzalez. A reputed debt relief law firm in Corpus, we can help you navigate your legal situation and advise you on how to proceed. Contact us now for more information.