Falling behind in mortgage payments has become epidemic these days. The housing crisis spreads like a disease, leaving many at the brink of Circleville repossession. If you find yourself facing foreclosure, realize you have more resources at your disposal than you think. Do yourself and your family a favor, and talk over your Circleville repossession with a bankruptcy attorney. There are legal steps that can be taken to keep you from losing your home, but act fast. The clock is ticking.
Bankruptcy doesn't have to be a dirty word. In fact, it can be the very tool that allows you to keep your home. After filing for either a Chapter 7 or Chapter 13 bankruptcy, the court automatically issues an Order of Relief to your Circleville repossession. This forces collectors to cease collection attempts, including foreclosure sales, until the bankruptcy has been finalized. It will save you at least three to four months.
However, this rule doesn't apply if the lender files a motion to lift the stay, effectively asking the courts to continue with the Circleville repossession. This can eliminate the stay, but you still usually get at least two months leeway, depending on how fasts the bank files against the stay. It also doesn't apply if the foreclosure notice has already been filed.
Chapter 13 Bankruptcy essentially sets up a payment plan on past due payments. You suggest the set up of the payment schedule, but realize you'll need to not only make past due payments but the current mortgage payments as well. It can effectively eliminate second and third mortgages by recategorizing them as unsecured debt. This debt is given the last priority, and usually is not even required to be paid back in full.
Chapter 7 bankruptcy cancels all debt attached to the home, including home equity loans and mortgages. It also forgives tax liability for losses the lender occurs as a result of the default. Chapter 7 forgives the debt, but it doesn't lift the lien on the home and you'll still face Circleville repossession. In reality, Chapter 13 bankruptcy provides the best route to keeping your home.
It's a lot to think about, but the solution begins with a conversation. Talk it over with a Warren Law Firm bankruptcy lawyer. In your initial free consultation, we'll discuss the prospects you have to avoid Circleville repossession. Help is only a phone call away.
There are several options to help get your life back on track if you are in danger of a Circleville foreclosure. For example, you may be able to refinance your mortgage or qualify for a "partial claim" from the Federal Housing Authority. Basically to avoid a Circleville foreclosure, the FHA insurance fund will make a one-time payment to bring your mortgage current in exchange for the promissory note due whenever you decide to sell your house or make the last mortgage payment. You might also qualify for "special forbearance" which is basically mortgage terminology for a modified payment plan.
Let Michael Warren and Warren Law Firm help you get back on track.
We'll answer your Questions, dispel the Myths and help you determine whether Bankruptcy is right for you.
Check-out our Brochure for even more information about Warren Law and the bankruptcy process.
