As someone who went through a foreclosure without using a Lawyer, my experience is a bit biased. But with millions of homeowners underwater, and many facing foreclosure, the demand for foreclosure lawyers has skyrocketed.
What would a foreclosure lawyer do?
If you are the home owner, a foreclosure lawyer would help you determine your options: modifying the loan if possible, bankruptcy, walking away, etc.
As a renter, if your the place you are renting goes into foreclosure, you have rights. Actually you have more rights than ever with recent legislation. A foreclosure lawyer would be able to help you stay in the home, or help you determine what options are available to you and review your lease contract.
While a lawyer is usually helpful
They are also usually not cheap. If you are facing foreclosure, there are lots of options available to you.
When I was losing my house, since I had virtually no assets, I decided to do a short sale. A short sale is when you sell your property for less than what the balance of your mortgage is. The process sucks, and it can take forever, but at least in my case it was the best option.
I was able to short sell my house, and didn’t have to sign a note to cover the balance. I had a good real estate agent experienced in short sales, and that helped quite a bit.
Pick up the phone and call 2 people
I would say it’s probably worth at least a quick phone call with a lawyer if you are facing foreclosure, but also a real estate agent that has experience in short sales. The real estate agent won’t have any out of pocket costs to you (as they only get paid if they sell the house).
If you are facing foreclosure, try not to get too down on yourself. A lot of people are in your boat, and you will recover from the process!