Housing issues / eviction

Since the housing crisis in 2008, many mortgage companies have initiated processes whereby a borrower in default may be able to restructure the loan and stay in the home. A person who is interested in reworking their loan may want to reach out to their lender to see if that might be an option. There are complicated formulas for whether or not a person would qualify for this. Anyone who is at risk of foreclosure may want to contact a lawyer or a housing counselor in their area. Most legal aid offices have lawyers who specialize in housing and/or foreclosure. You can find information about free and paid lawyers on our Finding a Lawyer page.

When a mortgage borrower is in default, there might also be other options to get out from under a loan and avoid foreclosure, like a short sale or a deed in lieu of foreclosure. A short sale is where a person sells the home for less than the remaining mortgage balance, and the mortgage company forgives the balance that remains. With a deed in lieu of foreclosure, the owner of the home essentially signs the property over to the mortgage company in exchange for the mortgage company forgiving the loan and avoiding a foreclosure proceeding. I am not sure if these are options for you, but they may be something to think about depending on the circumstances.

When more than one person is on a mortgage, those borrowers might be equally responsible for the entire debt. If one stops paying, the other may be able to bring a civil action to recover any damages that they have incurred because of their failure to pay. We have more information about bringing a lawsuit on our Suing an Abuser for Money page.