Can bankruptcy prevent foreclosure?

Foreclosure can be a scary concept. Losing your home may leave you without shelter. This can cause people to worry about where their families will be able to live and how their future looks. When people are facing financial difficulties, they may be unable to complete their payments for their house. If this occurs, they may have to face foreclosure. This can be scary for people since they may become uncertain of where they will live. They may not know how to combat foreclosure. By seeking the help of a professional attorney, you can learn more about your options for defense against foreclosure and try to prevent it from happening to you.

Before losing your home, there are a few ways to prevent foreclosure of your home. If your mortgage lender sues you when facing foreclosure, there are steps you can take to prevent this. Your attorney can assert a line of defense against foreclosure. They can assert counterclaims that may be able to protect you from losing your home. Attorneys may go through the process of requesting all documents in regards to the mortgage. They can also serve relating motions to dismiss the action of foreclosure against you. With their help, it can guide you toward getting into a loan modification program the law requires parties to enter into a Foreclosure Settlement Conference when action is taken against a residential property. This allows you to apply for a loan modification. When you apply, the bank will review your finances to determine if you meet the guidelines for a government loan modification program or one provided by the bank. A loan modification can modify the existing mortgage payment that you have. This may result in a lower interest rate, an extension of the loan term or a lower monthly payment. Whether the bank or the government issues the program, it should result in the dismissal of the foreclosure.

Going through the bankruptcy process may also defend yourself from foreclosure. You may be able to prevent foreclosure on your property with this process. This can stop foreclosure immediately by placing an automatic stay on your creditors. With an automatic stay, it can bar creditors from contacting you and demanding the money you owe them. A short sale is another option to consider when facing foreclosure. With this option, a lender can agree to a loan payoff that is less than the value of the mortgage by your sale of the home. However, the lender must approve the short sale.

Before taking any sort of legal action, it is important to discuss your legal matter with an experienced attorney. Contact The Radol Law Firm to discuss any divorce and family law matters you may be faced with.