If you are a homeowner dealing with financial challenges, you no doubt feel the pressure of potential foreclosure and bankruptcy actions. Though these cases are somewhat intertwined, they are separate proceedings with different laws and regulations. Without the necessary legal background to protect your interests, you put your home and credit rating at risk.
Fortunately, you do have options under federal and Pennsylvania law. Our foreclosure bankruptcy attorneys at Ark Law Group can help you in developing a strategy that makes sense for your financial needs. With the assistance of a knowledgeable lawyer, there is less fear of the unknown. You are empowered to save your home and take control over your future.
As a debt reorganization plan, you are allowed to retain certain types of property as you pay back your debts. Your home qualifies as real estate you can keep in Chapter 13. If you are behind on your mortgage, these amounts can be transferred over to the monthly payment you make to your bankruptcy trustee. A lender cannot pursue foreclosure while your case is before a bankruptcy court, but you are still obligated to make payments on the mortgage.
Homeowners in Pittsburgh, PA may qualify for the Allegheny County Residential Foreclosure Mediation Program if a foreclosure action has already been filed. In the mediation process, you meet with your lender and a third-party, neutral mediator to discuss your circumstances. The mediator’s job is to encourage productive conversations that may help you come to an agreement with the bank. If you are able to work out a loan modification, you can remain in your home as long as you remain current on your new payment obligations.
Homeowners often presume the worst about foreclosure, but it’s critical to understand how the process works. An overview of some key points may help.
Borrower misses first payment
Late notice sent
Collection calls begin
Notice of default
Act 91 notice sent
Judicial complaint filed
Contest foreclosure action
Judgment notice of sheriff’s sale
Sheriff’s Deed Recorded
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