Can bankruptcy prevent foreclosure?

Foreclosure can become a reality for some people. When people are struggling through tough financial times, it can affect all areas of their life. This can cause them to be behind on payments. Ultimately, this can affect payments on their residential property. Due to this, they may face the possibility of foreclosure. Although this can be scary for families, there are ways to prevent foreclosure. To learn more, it may be best to consult an attorney that has the legal knowledge to share with you. They can aid you at this time and assist you during the process of preventing foreclosure. They may also be able to help you work toward a more successful future.

What steps do I take?

Before you face the reality of losing your home, take the right steps to prevent the 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.

If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options.