What Happens if I Cannot Make My Mortgage Payments?

Not being able to keep up with your mortgage payments can be stressful. This leaves a lot on the line, as it means that you are currently facing foreclosure or repossession of your home. Continue reading to learn more about foreclosure notices and how an experienced Rockland County foreclosure defense attorney at the Law Offices of Allen A. Kolber, Esq. can help to ward off any creditors coming your way.

Can a creditor foreclose or repossess my home if I cannot make my mortgage payments?

Simply put: no, a creditor cannot directly repossess your home, but they can commence the foreclosure process. This may ultimately result in you losing your home.

To help ensure you pay off your debts, creditors may take legal actions against you such as garnishing your wages or placing a lien on your property. Nevertheless, below is a list of assets that creditors can and cannot repossess:

  • Assets that creditors have the legal authority to repossess:
    • Your vehicle, if you secured a loan for it.
    • Items that you had an option of purchasing, such as furniture.
    • Certain other properties, which may be kept as collateral.
  • Assets that creditors do not have the legal authority to repossess:
    • Any items you purchased with a credit card, as this is considered unsecured debt.
    • Certain other properties that are not specifically classified as collateral.

Should I file for bankruptcy if I cannot make my mortgage payments?

It is important to know that you have many options available to you before you land on the decision to file for bankruptcy. For one, it may be worth considering a loan modification. This is when you work with a lender to better match your mortgage payments with your financial situation. However, this is not a discount program, but rather a means of adjusting the present loan. With that being said, the banks will not approve a loan modification if you cannot prove sufficient income to pay your monthly mortgage, but will only approve if the mortgage can be returned to a current status. To begin this process, contact a skilled Rockland County loan modification attorney.

You are also entitled to apply to the Loss Mitigation Program of the Bankruptcy Court, which prevents the bank from enacting a foreclosure and sale of your home. This program allows you to apply for a loan modification and requires the bank to review your financial ability and determine whether you qualify for one of the government’s or the bank’s loan modification programs. For this, contact a seasoned Rockland County loss mitigation attorney.

Regardless of which avenue you choose, you should not have to navigate it alone. If you are ready to get your financial situation back on track, do not hesitate in reaching out to our firm today.

Contact our experienced New York firm

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.