Knoxville Foreclosure Lawyer Works to Keep Clients in Their Homes
Experienced East Tennessee attorney handles foreclosure defense matters
Anyone can suffer a temporary financial setback, but once you fall behind on mortgage payments, the threat of foreclosure becomes very real. At William E. Maddox, Jr. LLC, Attorney at Law in Knoxville, I am an experienced attorney who is determined to help Tennessee clients save their homes. No matter how difficult your circumstances might seem, I can devise ways to work with your lender in order to stop foreclosure proceedings. Alternatively, if you believe that leaving your home is the best option, my firm will protect your interests and help you move forward in the best financial position possible.
Knowledgeable advocate pursues solutions to mortgage defaults
Defaulting on your mortgage creates serious problems. Even if you end up securing the funds needed to make a standard payment, you could be hit with penalties or an acceleration clause that compels full payment of the mortgage balance. Whatever you’re facing, I can assist with a full range of foreclosure concerns and answer questions relating to:
- Notice requirements — A Tennessee mortgage will usually have a power of sale clause that authorizes a lender to take control of the property if required payments are not made. This can be completed without court action, but there are strict notice requirements. The borrower must be given at least 20 days’ notice and the foreclosure sale must be advertised in the newspaper. From there, the lender can file a complaint and lis pendens to initiate the legal foreclosure action.
- Deeds in lieu of foreclosure — When the equity in your house is less than the balance on your mortgage, you could lose your home and still be required to pay the excess amount to your lender. Should you be in a position where you are “underwater” in this way, my firm can try to negotiate a deed in lieu of foreclosure. In this process, a homeowner transfers their deed to their lender to satisfy their remaining obligation and avoid the hassle and potential credit problems linked to foreclosure.
- Short sales — Another option for people with underwater mortgages is a short sale. This transaction can allow a homeowner to satisfy their mortgage responsibility with the proceeds collected from selling the property to a third party.
- Forbearance — Pausing a mortgage payer’s obligation for a limited period of time might be in everyone’s best interests. I work to obtain forbearance if a client is capable of regaining their financial stability and paying back what’s owed later.
- Mortgage modification — My experience in this area helps me to negotiate mortgage modifications that are better suited to homeowners’ situation and needs.
No matter what option is best for you, I will treat you with the respect you deserve as my firm works to stop the foreclosure proceeding against you.
Effect of bankruptcy on a foreclosure proceeding
A homeowner who is struggling with debt might seek bankruptcy protection while their mortgage lender has started the foreclosure process. In these situations, Chapter 13 bankruptcy is often the preferred option because it gives debtors a chance to hold on to their home while establishing a court-ordered repayment schedule that sets manageable terms for mortgage obligations and other ongoing expenses. You might also be able to “strip” a second or third mortgage by converting it to an unsecured debt. As a secured debt, a first mortgage is not discharged under a Chapter 7 proceeding. The lender has the right to foreclose upon the house and it could be liquidated in order to pay back other creditors depending on the debtor’s family situation and how much equity is in the property.