Homeowners staying in their home even after missed payments

If you have fallen behind in your mortgage payments or have received a notice of foreclosure, you could be extremely concerned about whether — and when — you’ll have to move. In some cases, homeowners or renters will just move out, assuming they have no other option or as a way to just move forward.

In other cases, homeowners stick around and try to hold on to their homes. In some cases, this can mean filing for bankruptcy protection, which can put a stop to foreclosure efforts. However, there are other ways that people have found to stay in their homes and it all boils down to time.

According to this report in The New York Times, homeowners in certain states across the U.S. could be benefiting from an overly-burdened and complex legal system.

The report notes that there are homeowners who are years behind on mortgage payments who end up being able to keep their home without having to pay. This is due to a combination of strict statute of limitation laws and delayed or neglected court processes.

In some states, a judge’s signature is required to proceed with a foreclosure. However, thanks to huge backlogs of foreclosures from when housing prices dropped and the complications presented by modifications, many people have watched their case get drawn out (or forgotten about) for years. In cases when this delay extends past the statute of limitations in a particular state, the claim for foreclosure could ultimately be dismissed.

The laws in Georgia don’t require lenders to seek this type of judicial action in order to proceed with foreclosure, but this situation should serve as a reminder that there are a number of legal complexities and quirks that may play a role in individual cases of foreclosure. Having the help of an attorney can help people understand their case and take steps to protect themselves, their homes and their financial futures.