Once financial problems start, they just seem to escalate. At first, the South Carolina resident has trouble paying bills. Then, the phone starts ringing and collection notices appear in the mail. Finally, the bank or mortgage company threatens foreclosure. What began as perhaps a small financial problem can quickly turn into a financial catastrophe.
In many instances, mortgage companies will work with the borrower in an effort to avoid foreclosure. At times, it may be possible to restructure the mortgage so as to lower payments. In other cases, leniency may be granted to allow the borrower to catch up with missed payments. If the borrower has filed for bankruptcy, he or she may even be able to reaffirm the mortgage debt, catch up on missed payments and continue paying so that the home is not affected by the bankruptcy.
Unfortunately, not all lenders are as accommodating and may attempt to take aggressive action thus making foreclosure appear to be the only option. In recognition of this, there is currently legislation in the House of Representatives to help prevent some foreclosures. The FHA Foreclosure Prevention Act has been designed to make it easier for families with an FHA loan to work through financial hardships without the heartbreak associated with foreclosure.
Many times, financial problems cannot be avoided. However, how they are dealt with can make all the difference. South Carolina families facing such an issue do have options available to them. Experienced legal counsel can assist the individual and/or family in determining which option is best and possibly avoid foreclosure.
Source: housingwire.com, “Waters introduces legislation to prevent FHA foreclosures”, Kelsey Ramirez, April 19, 2018