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Good morning. I am sorry to hear about the situation and certainly understand your concern. When an application for a loan modification is denied, it does not mean that all hope is lost. Since the bank told you what the three qualifications were to be approved, you would need to apply if and when, you would meet one of the necessary qualifying reasons. Your situation is constantly changing, so when it does, which would allow you to qualify, you would need to re-apply. I would be hesitant to start working with the person who called you, as they may not be able to help get your loan modified, since it is at the sole discretion of the lender. For all we know, they could have bought the cases and leads from the other firm and are just trying to get you to retain them. There is nothing wrong with speaking to them but ask them what they intend to do, based upon the information which you provided them, about what has happened so far. As them what they will do differently, when the lender told you that you do not qualify at this time. If the situation does get worse and you want to try and avoid foreclosure, you may want to speak with your lender about a short sale or deed in lieu of foreclosure, to prevent the foreclosure from appearing on your credit and staying there for roughly seven years. It may also allow for you to avoid any deficiency, which the lender may seek.
Can one retain an attorney to stop the foreclosure? Can one prove just cause for default? How about if the value of the property is much less than the amount owed? What is the possibility of bankruptcy, if one cannot meet the bank's criteria?
Yes, you can certainly retain legal counsel once the foreclosure action is filed. The attorney will represent you, file an answer to the complaint and raise any defenses which you may have. The burden would be on the lender to show you are in default, which is typically a condition precedent before they can file for foreclosure and they need to send you written notice, with a chance to cure.If the value of the property is less when what is owed, that is where my suggestion of a short sale would come in. A short sale is when the lender is willing to allow the home to be sold for less then it is worth and in some cases, waiving the deficiency. You also could file for BK, if it is in your best interest to do so. If you are considering that, you need to consult with a BK attorney who can look over your entire financial situation to determine if it is in your best interest.