Keeping Shelter

Hard economic times usually means that people have to struggle to keep a roof above their heads.  Often times families must move in together as it becomes harder to pay the rent or homes go into foreclosure.  

Every time I go the the Warren County, Iowa, courthouse in Indianola, Iowa, I am struck by the increasing numbers of sheriff's sales posted on the wall.  A few years ago, the sheriff's sale notices only occupied a small portion of one large bulletin board.  Now the notices occupy over one full bulletin board.  Each of those postings represents a family that is forced to seek shelter elsewhere.  What began as inflated mortgages on overpriced homes now threatens to spiral to suck in middle class homeowners who are seeing a loss of earning power, or even the loss of their jobs.  The financial industry is realling under the pressure of an ever increasing default rate.

While the laws differ in each state, there are clear approaches that people facing foreclosure should explore:

•  Gather your mortgage documents and read them.  They are usually lengthy and often confusing to nonlawyers.  Often the loan officers who presented them to you did not understand them themselves.  Nevertheless, read them and list questions to ask a lawyer later.

•  The Iowa foreclosure statute provides that you can request a delay of sale of up to six months after an judicial decree of foreclosure is entered. You may want to request that this notice be entered on your behalf.  You never know what may come up.  One of my clients did not see any hope, but had me do this for them anyway.  Later, within that period, one of the spouses learned that an inheritance would be forthcoming and I was able to negotiate an arrangement whereby they could remain in their home and resume payments.

•  Occasionally there have been misrepresentations by the mortgage lender.  Under these circumstances it may be possible to make claims against the lender and prevent foreclosure.

Even if you are strapped for cash, it may be a good idea to at least seek the advice of an attorney who is familiar with representing homeowners in foreclosure situations.  While not having enough money is at the root of the problem, at least one consultation with the attorney may be a good idea.  Sometimes the attorney has a cut rate initial consultation fee policy.  For instance, our office only charges $95 for up to a 45 minute consultation.  During that some, if you have come properly prepared, we can usually determine a possible route for you to follow.  There are many other lawyers who have similar policies.

© Rod Powell