Foreclosure can be one of the most frightening experiences of your life. The good news is you aren’t alone. There are people on your side who are there to help you deal with your financial situation and possibly even remain in your home.
The most important thing you can remember if you are facing foreclosure is that your mortgage company is not one of them.
Though it might seem as if your mortgage company is trying to work with you, their goal is to get their money. If it seems as if offering comfort or understanding is more likely to get them money, they’ll offer comfort and understanding. This doesn’t mean they want to help you and it doesn’t mean they aren’t going to take your home from you if you aren’t able to come up with the money you owe them.
What Stops Foreclosure?
No matter what your mortgage lender or the bank that purchased your mortgage has told you, bankruptcy is the only option for stopping foreclosure if you can’t afford to bring your payments up-to-date.
Filing for Chapter 13 bankruptcy stops foreclosure and gives you time to catch up on past due mortgage payments. It also allows you some wiggle room so you can refinance or complete other loan modifications that will make it easier to meet your obligations. You’ll still be able to live in your home, as long as you follow through with the bankruptcy and what’s required of you.
If you’ve been threatened with foreclosure or you have fallen behind on your payments, it’s best to contact an attorney. Mortgage companies are notorious for giving the appearance they are working with you and then delaying paperwork and throwing other roadblocks in the way to prevent you from saving your home.
When Should I File for Bankruptcy?
The answer to this question is always “as soon as possible.”
Unfortunately, people view bankruptcy as their last resort all too option and though it’s possible to file after foreclosure proceedings have begun, you face a higher risk of losing your home. And if a sale date has been set by the bank, bankruptcy might not offer any protection for your home.
Bankruptcy creates an automatic stay, which legally obligates the bank to stop foreclosure proceedings. It’s the only way to ensure your house will not be sold out from under you while you think you are working to resolve the problem. You’ll lose any equity you’ve accumulated, no longer be able to live in your home, and have a very difficult time getting another mortgage in the future.
Chances are good you’ll eventually file for bankruptcy anyway, so why not file for bankruptcy while you can still save your home?
For more information on how the automatic stay works to protect you, check out this information from Cornell Law School.
We’ll Help You Stop Foreclosure Proceedings
If you’ve fallen behind on your mortgage payments or you have concerns foreclosure could be in your future, we can help. You can’t trust your mortgage company to look out for you and saving your home is too complicated to do it on your own.
For more information on how bankruptcy can help you or you have questions about foreclosure, contact R. Flay Cabiness, II, P.C. at (912) 554-3774 (Brunswick, GA); (912) 375-5620 (Hazlehurst, GA) or; (912)-554-3756 (Jesup, GA).
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