If you have fallen behind on your mortgage and are facing the prospect of foreclosure, this blog can help you decide on strategies to save your home. Depending on your situation, a loan modification may be available through your bank or the federal government. However, using a loan modification to prevent foreclosure can be a risky choice. To be eligible for a loan modification, you generally have to be behind on your mortgage. Some people intentionally stop paying their mortgages to become eligible. In other cases, your lender may request lower payments (also called trial payments) while they determine your eligibility. These are partial payments and may not meet the minimum obligation on your mortgage. If your request for a loan modification is denied, your mortgage may be put in arrears and you may owe late fees for missed or partial payments. Having your loan modification request denied means you…
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The bills are mounting up and creditors are calling. You skip a mortgage payment to try and catch up. Before you know it, you have missed three mortgage payments and you receive a “Notice of Default” and your home may be entering the foreclosure process. Both carry the ominous news that your lender has begun the foreclosure process. You may be in danger of losing your house. You wonder if filing for bankruptcy will be the answer. Filing a bankruptcy petition will trigger an automatic stay of collection action. In order to proceed with the foreclosure during the bankruptcy, the lender will have to obtain an order from the bankruptcy court. Whether you can ultimately save your house depends on your financial circumstances and whether you file under Chapter 7 or Chapter 13. Chapter 7 Bankruptcy and Foreclosure Although filing under Chapter 7 will temporarily halt the foreclosure process, it…
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Chapter 7 Bankruptcy can temporarily stop or delay foreclosure proceedings because the lenders cannot initiate or continue any collection efforts on any debts, including mortgages, until permitted by the bankruptcy court. In a Chapter 7, also called a liquidation, a homeowner can rarely keep their home unless they have remained current on the mortgage. This is different from Chapter 13 bankruptcy, which allows debtors to bget currentb or pay back any arrears on their mortgage over a period of up to five years. If the homeowner is current on their mortgage, they have the option of reaffirming the debt and keeping it after the bankruptcy is complete. If the debtor is behind on their mortgage and unable to cure any arrearages on the mortgage prior to filing bankruptcy, most likely the debtor will surrender the home after the bankruptcy has been completed. During this time the debtor may remain in…
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*Credit card payments will not be accepted for bankruptcy cases, unless pre-approved by The Sader Law Firm. If you have a question about a credit card payment, please call our Office Manager at (816) 561 1818.
Sader Law Firm is a Debt Relief Agency. We help people file for Bankruptcy Relief under the Bankruptcy Code. The information contained on this website is not to be construed as legal advice. It is not intended to solicit or form an attorney-client relationship. We do not guarantee any result and prior results do not guarantee a similar outcome. This is an attorney advertisement and this website is for informational purposes only.
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