One of the most stressful experiences that a person can have is when they can no longer make mortgage payments on their home and it goes into foreclosure. Foreclosure simply means that the mortgage lender is going to repossess the house because the homeowner can no longer afford to make payments on it. Luckily, there are ways to put the foreclosure process on hold and even save a person’s house.
Immediately after an individual files for bankruptcy, the court will issue an automatic stay. This means that no debt collectors or lending companies can even so much as contact you regarding your outstanding payments and debt. An automatic stay also puts an immediate hold on the foreclosure sale. In a Chapter 13 bankruptcy, the homeowner may have the opportunity to reorganize mortgage payments and make up for late payments slowly over the course of 3 or 5 years. Any outstanding payments that were not made after that 3 or 5 year period will be dismissed. This is one of the ways that homeowners facing foreclosure can save their home.
Chapter 7 bankruptcy is a little different. It may require the homeowner to give up their home but it may allow them to stay in the home free of charge during the process of bankruptcy.
If you are concerned about your financial status or foreclosure, contact our firm today.
Before taking 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.