Not only you need an attorney, you might need to speak to a few of them before deciding who
is appropriate and good for your particular situation. For example, a bankruptcy attorney is good if your don't have money, hence, could not pay for the property etc... BK will protect you (if qualified) from the foreclosure lender deficiency seeking court action.
If you can't do BK (which you'll find out after speaking with a BK attorney), then you need to speak
to an attorney who can "settle" the balance with the foreclosure lender for you.
The settlement could be done as a 1 time payment, or a soft note of 5 to 10 years (paying monthly).
The agreed upon payoff will set you free, but the documents will need to be prepared "just so"
by an attorney.
Hope this helps,
Beachfront Realty, Inc.
While hiring an attorney is the right move to protect yourself, I will say that banks have been known to try to attach to just about everything, and having cash laying around (for whatever reason) after a foreclosure is a bad idea. Ultimately, they might not be legally in the right to take it, but would you rather pay a small fee to an attorney for some advice up front, or a large feeto an attorney to help you get it back after they take it (even if they are not supposed to).
Coldwell Banker Burnet
licensed MN Real Estate Broker