Bankruptcy stops foreclosure
If you are worried about foreclosure, one about to be filed, one that has been filed, or one that is underway for a while, the quick answer is that bankruptcy CAN stop foreclosure.
How did this happen?
You may have been struggling for months, or even years. You may have had a job loss, medical issue, divorce, or some other life calamity that turned your world upside-down.
When you can’t pay all the bills, it’s natural to pay the creditors who scream the loudest.
Your mortgage is never that creditor.
You don’t get daily harassment from the mortgage company when you are late or miss a payment. Usually just a quiet letter in the mailbox. No big deal. You’ll catch it up later. Really.
Once you get a few months behind you get worried, but still no calls. No harassment. And normally your life is pretty busy taking care of other issues. You really do mean to make the payment, just as soon as you get the money together. Next payday, you promise yourself, you will make a full house payment, and some to catch up what you are behind.
Then you get the “acceleration” letter. “You have to catch it ALL up,” says the letter, “or your mortgage will be referred to the ‘legal department’ for foreclosure.”
There’s the word you did NOT want to see. Foreclosure.
“What about a loan modification?” Would they work with you? What are your options now?
There’s no way you can catch up all the missed payments at once. If you could do that, you wouldn’t be this far behind in the first place.
If you attempt to go for a loan modification, you are in for a treat. It’s a dangerous, nerve-wracking, frustrating process, with an incredibly high failure rate.
And, you need to be warned – the foreclosure will continue against your home even if you DO try for a loan modification.
More than 95% of everyone I talk to tell me the same things. The mortgage company loses their paperwork, repeatedly. They have to update paperwork even though nothing has changed. The mortgage gets sold in the middle of the process and they have to start all over again.
While all this is going on, there are people hired by the mortgage foreclosure lawyers to drop by repeatedly to take pictures of your home. They won’t tell you why. The loan modification people don’t have any answers either. (it’s actually part of an “automatic” process controlled by the big computer in the mortgage company somewhere – really – that is source of the order for the photos being taken)
And, as the foreclosure process goes on, and on, potential bidders may drop by to look at your home as well. Sometimes they even knock on your door – you don’t have to put up with that! Tell them that if they don’t leave you will report them to the police as trespassers. After all, you still own the property, for now.
Meanwhile the foreclosure continues to move forward. Unless you “filed an answer” (huh? What does that mean?) with the court, you are NOT entitled to get ANY notices of ANYTHING going on in the foreclosure process. No Kidding. It’s in the rules.
So, it’s a good idea to at least get an attorney involved to help protect and advise you as the process goes forward. Even if you don’t intend to use bankruptcy to stop the foreclosure. And even if you don’t think there is much hope of the loan modification really being approved. Just knowing what is happening and having some control and input into the process makes you feel better.
Ultimately, you will be faced with a decision to make, several of them, actually.
What is really possible for you to do with the situation? Surprisingly, there may be more options than you think. And certainly more options than “they” will tell you.
Options are good. And knowing what options you have, and what options you can combine with other options to get an even better result is – well – even better.
Because I have handled thousands of foreclosure cases, I can help you sort all this out. So you know not only what’s possible, but what’s most beneficial for you. For you future. Your future financial recovery depends– in large part – on how you handle this foreclosure.
So, wherever you are at. Pre-foreclosure, beginning the process or well into it, you need to know your options. Honestly, the earlier in the process you get counsel, get get the information that you need, the more options you’ll have.
So don’t wait. Find out what they can and cannot do, and what you can, and cannot do, today. Call for a free foreclosure consultation. 937 748 1749. Getting started is the hardest part, but we can make it a lot easier for you. Call us today and you’ll sleep better tonight.