Learn How A Foreclosure Attorney May Be Able To Help You Keep Your Home Through Bankruptcy
by Veeti Lepisto
Learning that the bank plans to foreclose on their home after falling behind on their mortgage payments can be a devastating experience for many people. After all, no one purchases a home with the hopes of losing the investment they have made in the property. Furthermore, securing new housing can be extremely difficult after going through the foreclosure process. Thankfully, it may be possible to prevent the loss of your home with the help of a foreclosure attorney. Below you can learn more about how these attorneys may be able to help you prevent your home from being foreclosed on through the use of personal bankruptcy proceedings.
Temporarily Stopping The Foreclosure Process
When you first file for any type of personal bankruptcy relief, all of your creditors will be legally obligated to cease their collection efforts. This includes your mortgage lender. While your lender will have the right to petition the court to restart foreclosure proceedings since a mortgage cannot be discharged as part of a bankruptcy settlement, this process will take some time. This is time that can be used to either get caught up on your mortgage payments or to complete a short sale of your property in order to avoid foreclosure. While you will still need to find a new home if you end up selling, this type of sale can allow you to cash out the equity you have in your home and avoid any negative impact to your credit.
Avoiding Foreclosure Through A Court-Ordered Payment Plan
If your financial situation has improved since you originally fell behind on your mortgage payments, your foreclosure attorney may recommend that you file for Chapter 13 bankruptcy. This is because unlike other types of personal bankruptcy, Chapter 13 bankruptcy gives you the opportunity to keep your home and avoid foreclosure through the use of a court-ordered payment plan. In order to be eligible for this type of payment plan, you must be able to demonstrate that you have the financial resources required to make both your current mortgage payments and the additional payments required under your payment plan. If you are able to complete this payment plan as ordered by the court, your mortgage lender will not be able to legally foreclose on your property unless you fall behind on your payments again in the future. For people with the income required to complete this program, Chapter 13 bankruptcy will often prove to be the most effective way to avoid losing their homes to foreclosure.
For more information, contact a foreclosure attorney near you.
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About Me
Several years ago, one of my best friends married the guy of her dreams. This tall, quiet man adored my friend. Almost every week during their courtship, he presented her with a beautiful, fragrant arrangement of flowers. At the time, my friend’s mom joked that her home resembled a funeral home because of all of the flowers her boyfriend sent her. After the happy pair married, they purchased a new home together and quickly began running out of money, meaning that he could no longer afford to give her the flowers she loved. They even discovered they couldn’t afford to pay the monthly mortgage. After only a few years of marriage, they filed for bankruptcy. On this blog, you will discover the ways a reputable bankruptcy attorney can help you successfully recover from financial ruin.