For most people, a mortgage is their most expensive asset and largest debt. If the debt owed on your home becomes too high of a financial burden to bear, you have a short window to seek help for your missed payments before losing the home.
Foreclosure is a legal process by which mortgage lenders can take a property from a homeowner that has defaulted on their loan. Typically, the foreclosure process lasts several months, depending on the state you live in. However, there are situations in which a mortgage lender may begin the foreclosure process after the first missed payment. Through the foreclosure process, the lender can evict your family after sell the home to satisfy the debts owed.
Although the foreclosure process can be swift and severe, there are options for resolving outstanding mortgage debts. But, time is ticking on the clock of debt resolution.
There may be a couple of options to get you out of foreclosure trouble before the sale takes place. It may be that you need to file for bankruptcy if none of the other options like loan modification is available to you. It may be that you have let your situation go too long and the foreclosure sale is eminent like within a few days. Even in this situation, you might still have a chance to save your home if you are eligible to file for bankruptcy prior to the actual execution of the foreclosure sale.
An automatic stay will be put into effect immediately. This is like an injunction that won’t allow the mortgage holder to proceed or to continue trying to collect. The lender could also petition the courts to lift the stay so they can continue with their actions. This may be successful but it will stall the foreclosure proceedings. It will at least buy you some time to seek out other possible alternatives. There may be a possibility your loan holder will give you a loan modification, these are few and far between but it is worth asking. If you do seek out a loan modification you will probably have to call every day and get them to answer your questions. Some people have had success in asking for a modification to lower the interest rate and reduce the payments. They have also received the modification in some instances after declaring bankruptcy.
After you have filed a bankruptcy, you will be given a case number and eventually an estimated release date, which is your discharge and to reclaim control of your properties. In most cases, you may be able to stay in your house and continue to pay off the mortgage lender if you have continued your payments on schedule.
Both the foreclosure and bankruptcy process are not for the faint of heart. They both require the help of an experienced attorney. Contact an experienced Sacramento bankruptcy attorney today to discuss your options for keeping your home while resolving your debts.