Cloud Willis & Ellis’ experienced Birmingham foreclosure attorneys will represent you to insure compliance with all applicable laws and procedures regarding foreclosures. Our attorneys can assist the lender with renegotiation of loan and mortgage modifications, short sales, deeds in lieu of foreclosure, deficiency judgments, and other pro-active steps to protect your legal and economic rights in secured financing situations involving property. When default occurs, the steps you take are critical in determining how quickly and effectively you regain the deed, title, and possession. Our attorneys can save you time and money in this challenging process.

Cloud Willis & Ellis assists institutional lenders, mortgage loan servicers and private lenders throughout the state of Alabama and Georgia in the foreclosure process for residential and commercial properties.

Lender Services That We Provide

Foreclosure is the process of recovering the assets a lender lent the borrower, and is accomplished through sale of the property or taking over the deed. However, there may be a better solution for all parties involved. A renegotiation of the loan or a mortgage modification is the process of adjusting the loan into a payable option for the struggling borrower. This is accomplished by forbearing principal (a short period of time that payments are stopped to help the borrower get back on their feet), extending the mortgage lifespan and decreasing monthly payments, decreasing the interest rate, or taking the loan from adjustable to a fixed-rate loan. This not only helps the borrower in many ways, such as their ability to keep the property and their credit rating, but also awards the lender by offering the likely possibility of a better profit than if the borrower foreclosed and went into bankruptcy. In 2009, the U.S. Department of the Treasury and the Department of Housing and Urban Development (HUD) initiated the Home Affordable Modification Program (HAMP), which is a national-level loan modification program. According to the Department of Treasury, the program helps struggling borrowers modify their first-lien mortgage so that they can afford to make payments and stay in their homes, which, as described above, can be a beneficial scenario for both parties. Loan modifications are not as common as a lender keeping a borrower in limbo, according to propublica, and have not increased as a result of this federal program, unfortunately. Modifications are about as likely as a foreclosure. Despite the benefits to society at large and the often beneficial outcome for a lender, a renegotiated loan or mortgage is not always economically advantageous to the lender, which is why hiring an experienced foreclosure attorney is essential to sussing out your options to determine what the most beneficial option is for you and your business.

A pre-foreclosure sale of a property is termed a short sale. Short sale of a home is the process of selling it for less than what the borrower currently owes on their mortgage. A short sale can help reduce or wipe out mortgage debt for the borrower and eliminate the threat of foreclosure or bankruptcy. The benefit is two fold: both for the borrower and lender.

If the borrower is unable to renegotiate their loan or complete a foreclosure, they may wish to transfer the property over to the lender, a process known as a deed in lieu of foreclosure. In this scenario, the lender now owns the property and the borrower is free from the debt of their mortgage payments.

We also help our lending clients with deficiency judgements. A deficiency judgement occurs when the foreclosure sale of a property was not enough to wipe out their loan. Pursuing a deficiency judgement is often a time-consuming, and costly endeavor for a lender, and not always economically viable, which is why hiring an experienced attorney to do the leg work can streamline the process.

Contact Cloud Willis & Ellis, LLC today for foreclosure assistance of any type in Alabama. We are eager to help you throughout each step of your case, contact our Birmingham foreclosure attorneys today.