Can I Prevent the Foreclosure of My Home?

suburban residential home

Losing your home to foreclosure can be devastating. And even if you need to be relieved of the debt of your home, this is likely the least favorable outcome for you. Rest assured, there are options out there for you, such as a loan modification or filing for bankruptcy. Continue reading to understand how an experienced Rockland County foreclosure defense attorney at the Law Offices of Allen A. Kolber, Esq., can work on your behalf to prevent the foreclosure of your home.

Can I prevent the foreclosure of my home with a loan modification?

Put simply, a loan modification allows you to rework your mortgage payments to align with your current financial situation. New York state requires residential properties on the brink of foreclosure to be assigned to the Foreclosure Settlement Conference Part. During this process, the bank will review your financial situation to decide whether you qualify for a loan modification. With this, you must provide the bank with the following documents in your application:

  • Financial statements and/or profit and loss statements.
  • Personal bank statements and/or business bank statements.
  • Pay stubs from each contributing family member in your household.
  • Person tax returns and/or business tax returns.
  • A current utility bill proving you reside in the home.
  • A hardship letter explaining the reason for your default and your current ability to pay the mortgage.

Notably, the bank will only approve a loan modification if they believe that you can successfully make your mortgage payments with the updated plan.

Can I prevent the foreclosure of my home with a bankruptcy filing?

Perhaps filing for Chapter 13 bankruptcy is the best option to prevent the foreclosure of your home. Essentially, with a Chapter 13 bankruptcy, you must submit a plan for how you will pay your debts over the course of 3 to 5 years so that you can catch up on your mortgage payments. With this, the Automatic Stay will go into effect immediately, so that you can be protected from harassment by creditors.

Importantly, in accordance with New York law, you are required to receive and prove credit counseling within 180 days before filing for Chapter 13 bankruptcy. If a previous petition was dismissed within these 180 days, you cannot file again. Once you file, you should file additional documents, such as the following:

  • A list of your liabilities.
  • A list of your assets.
  • A list of your properties.
  • A list of your unexpired contracts.
  • A statement of your financial affairs.
  • A statement of your income payments within 60 days prior to filing.
  • A statement of your monthly net income.

If you believe filing for Chapter 13 bankruptcy is the best way to prevent the foreclosure of your home, do not hesitate in contacting a talented Rockland County Chapter 13 bankruptcy attorney today.

Contact our experienced New York firm

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