Keeping up with mortgage payments is sometimes impossible, and it can put good, hardworking people into really trying financial situations. All it takes is a few missed mortgage payments for a lender to start pressuring you with foreclosure. Whether you lost a job, you or someone in your family suffered an injury or illness, or another life event changed your financial footing, you have legal advocates that will fight for you. By getting in touch with an experienced Phoenix foreclosure bankruptcy lawyer, you can enter this process fully aware of your options and take the best course of action.
If you are facing foreclosure, it is time to act.
Chapter 7 bankruptcy has many purposes and can provide short-term help. If you have other non-home debts that are getting in the way of your mortgage payments, such as an auto loan or credit card debt, chapter 7 will allow you to halt payments for those items, which will most likely be taken back by the lender. Chapter 7 bankruptcy also applies an automatic stay, which can delay foreclosure. This means that lenders can no longer pursue payments, though they may attempt to have the stay lifted. Finally, if your home is being foreclosed, filing for chapter 7 bankruptcy can help you avoid deficiency tax.
Chapter 13 may be a better long-term solution than chapter 7, depending on your circumstances. By filing for chapter 13, your debts are not simply forgiven - as they are with chapter 7 - but are reorganized in a way that makes them more affordable to pay. Instead of owing a huge lump sum, your past mortgage payments may spread out over a period of time. If you can stay current on your future payments, and pay off the past payments during that timeframe, your home will be yours to keep. You will be safe from foreclosure during that period so long as you continue to pay your current mortgage.
Lenders are hesitant to follow through with a foreclosure if there are other viable options because they tend to lose 30 percent or more of the home’s value during a foreclosure, according to Politifact.
At Ark Law Group, we pursue every option, whether that means bankruptcy, deed in lieu of foreclosure, a short sale, or a loan modification. Below, we've listed some of the options you should consider with your attorney. Contact us today to get help as soon as possible.
Borrower misses first payment
Lender can record a Notice of Default (NOD)
Lender can record a Notice of Trustee Sale (NOTS)
Lender can conduct a Trustee’s Sale of the home
If eviction is required, new owner of property must send 5-day notice.
New owner can file a court action for eviction
Five days typically granted for move-out. If still present, order of restitution issued
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