Bankruptcy Is Usually the Best Option to Stop Foreclosure
If you are behind on your home mortgage payments and facing foreclosure, you may have heard about a number of options such as mortgage renegotiation, short sales and deed in lieu of foreclosure. For most homeowners, however, the choice is fairly simple: Move out or file Chapter 13 bankruptcy.
At UHLLAW, PC, we offer a free initial attorney consultation to discuss your options if you are facing home foreclosure. We have offices in Worcester, Fitchburg, Boston, Orange and New Bedford in Massachusetts.
How do I Stop a Home Foreclosure?
If you are significantly behind in your mortgage payments, the only sure way to stop a home foreclosure and keep your home is to file Chapter 13 bankruptcy. Filing Chapter 13 bankruptcy allows you to put your mortgage arrearage into a payment plan and pay it back over a five-year period without interest or penalties. Chapter 13 bankruptcy also allows you to strip a second mortgage if the current appraised value of your home is less than the combined first and second mortgage.
To qualify for Chapter 13 bankruptcy, you must be able to continue to make your mortgage payments, plus a little more for your repayment plan.
When Is It Too Late to Stop a Home Foreclosure?
You can stop a home foreclosure as long as the auction has not taken place. Once the auction takes place, you no longer own the home and nothing can be done to save it.
Can I Renegotiate My Home Mortgage?
In our experience, lenders have been hesitant to renegotiate mortgages because they have no economic incentive to do so.
Can I Solve My Mortgage Debt Using a Short Sale or Deed in Lieu of Foreclosure?
Most banks won't accept a deed in lieu of foreclosure because they already have a large inventory of unsold homes. In a short sale, a bank has to take the loss all at one time, and many refuse to do it.
Will I Still Have Mortgage Debt if My Home is Sold Through Foreclosure?
If your home is sold for less than what you owe, you are still liable for the difference. You can discharge this debt by filing Chapter 7 bankruptcy.
Free Bankruptcy Lawyer Consultation
Come with questions and leave with answers about how we can stop home foreclosures and give you a fresh financial start. Call 888-219-3993 or fill out our contact form to schedule a free initial consultation with a bankruptcy lawyer.
