Emergency Bankruptcy Filing Attorney for a Home Mortgage Foreclosure in Folsom
Facing a foreclosure is an anxiety-inducing and harrowing experience for any homeowner. Often, the point of foreclosure was reached through no fault or personal failing of the homeowner. In some cases, the loss of a job can throw the financial affairs of the individual into disarray. In other circumstances, an illness to the homeowner, a child, or another family member can create financial hardships, where falling behind on your mortgage is, quite frankly, likely. It is important to remember that many financial setbacks are only temporary and if the homeowner is given enough time, he or she could get back on track.
Unfortunately, sometimes a lender’s patience is exhausted before the homeowner has had ample time to get his or her financial affairs in order, and catch up on mortgage payments. Folsom homeowners may face foreclosure proceedings and fear that their homes will be lost. Fortunately, the experienced attorneys of The Bankruptcy Group can often stop a foreclosure of a home through the power of bankruptcy. Still, time is of the essence when it comes to stopping a foreclosure proceeding, because delays reduce the amount of time to research, prepare, and file a comprehensive bankruptcy petition. To schedule a free and confidential emergency bankruptcy legal consultation, call The Bankruptcy Group at 1-800-920-5351 or contact us online today.
What Does It Mean When I Receive a Notice of Default on My Mortgage?
In California, the foreclosure process proceeds through non-judicial means. This can often take home and property owners by surprise, since they may mistakenly ignore a notice or warning of an impending foreclosure because they “haven’t even been to court yet.” With a foreclosure process that often takes at least several missed payments before the lender will take action; but, delays after receiving notice of the start of foreclosure proceedings can still affect your ability to protect your home.
If you have received a Notice of Default from your mortgage company, the process of foreclosure has already started. At this point, you should immediately begin researching and consulting with professionals to determine your options. The Notice of Default brings a three-month window before a foreclosure sale can be scheduled and published. Following the scheduling of the foreclosure sale, at least 21 days must pass before the actual sale is held.
Chapter 13 Is Often Available to Protect a Home in Foreclosure
While Chapter 11 can also offer protections for a home, its use is typically limited to particularly complex financial situations. People often ask about Chapter 7 to save their home, but Chapter 7 handles unsecured debts much more effectively. Since a home mortgage is usually a secured debt, Chapter 7 does not offer significant protections beyond short-term relief. However, Chapter 13 is well-suited to address problems regarding secured debt. This means that in most home foreclosure situations, Chapter 13 is the preferred path.
Under both Chapter 11 and Chapter 13, a bankruptcy filer is granted a certain amount of time where he or she can engage in a payment plan designed to catch up on those that are in arrears. A Chapter 13 plan can last for as short as three years or for as long as five years. The main consideration is how long it will take for the filer to catch up on back payments while simultaneously satisfying current payment obligations. Under a Chapter 13 filing, creditors will typically accept valid repayment plans, thereby protecting the filer’s home from foreclosure and giving the homeowner additional time to catch up on unpaid debts.
Chapter 13 can also be a powerful tool when the filer has multiple mortgages. Due to a decrease in property values, most second and third mortgages are no longer secured by home equity. Therefore, by making use of Chapter 13’s lien stripping abilities, the additional mortgages can be re-characterized as unsecured debt. Unsecured debt receives the lowest repayment priority under Chapter 13. This can reduce the payments of the homeowner and save the homeowner money over the course of the plan.
Work with an Experienced Folsom Bankruptcy Attorney to See If You Can Stop the Foreclosure on Your Home
If you are concerned with the possibility of losing your home in Folsom, California, the experienced lawyers at The Bankruptcy Group can help you avoid foreclosure and protect your home from Chapter 13 bankruptcy. Try not to delay, as filing for bankruptcy can take time, and you want to ensure that all debts are included in the filing so that if you must file, you can reap the benefits of the bankruptcy. To schedule a free and confidential consultation at our Folsom location, call 1-800-920-5351 or contact us online today.