Can an Emergency Bankruptcy Filing Stop a Home Mortgage Foreclosure in Roseville, California?
If you are a homeowner facing foreclosure on your Roseville, California home, you may be distressed about the prospects of losing the place that offered comfort and produced so many memories. The amount of debt and personal circumstances can lead to a sense of helplessness with nowhere to turn for solutions. Fortunately, bankruptcy can often provide the means for a homeowner to not only save his or her home, but also allow time to catch up on other unpaid debts.
Whether falling behind on your mortgage and debts are the products of job loss,an illness, or family medical emergency, you do have options. In certain cases, those options might be able to protect the home. However, if you have already received foreclosure paperwork and notices, your time to take action may be limited. Don’t delay, and contact an experienced attorney from The Bankruptcy Group today by calling 1-800-920-5351 or contact us online.
How Do I Know That I’m Facing Home Foreclosure and Need to Take Action?
One unfortunate, yet common aspect of the California foreclosure system is its allowance of homeowners to delay the occurrence of a foreclosure until it is too late. In this state, most foreclosures are non-judicial in nature. This means that when you signed your mortgage or loan papers, there was likely a provision authorizing the lender to take action against delinquent loans without the need for additional judicial authorization. If this provision exists, the lender does not have to go to court to start the foreclosure process. However, the company does have to provide the homeowner with notice that the process to foreclose has begun.
This notice comes in the form of a Notice of Default, meaning that the lender intends to sell your home through a foreclosure sale. From the date of your receipt of the Notice of Default, a three-month clock begins to run. During this period, you should immediately start looking into your options to stop the foreclosure. After the three-month window has elapsed, the company is free to schedule and publish notice of a foreclosure sale. The company must allow at least 21 days from the announcement of the sale until the date when it will actually be held.
Chapter 13 Can Stop Foreclosure and Give You More Time to Repay Loans in Arrears
Chapter 13 is often the the best choice for a homeowner to stop foreclosure and keep his or her home. While both Chapter 7 and Chapter 13 can offer relief from creditor calls through the automatic stay, the relief provided through Chapter 7 is only temporary. Despite its suitability for addressing credit card debt and other forms of unsecured debt, its powers are limited when it comes to secured debt. Since a home mortgage is a type of secured debt, Chapter 7 is not typically the best route to take.
Though, under a Chapter 13 bankruptcy petition, the bankruptcy filer can agree to follow a payment plan lasting from three to five years. Under the payment plan, the bankruptcy filer is required to pay overdue debts in addition to keeping current with all present payments. Thus, the length of the repayment plan is often determined by both the amount of debt and the individual’s ability to repay. Most reasonable and valid payment plans under Chapter 13 are accepted.
Chapter 13 also has a unique feature known as lien stripping, which allows a person with multiple home mortgages on their property to possibly remove the second and third mortgages on the property. This can occur when the additional mortgages are no longer secured by the equity in the home. The mortgages that are stripped from the property are then treated as unsecured debt. In Chapter 13, unsecured debt receives the lowest repayment priority.
An Emergency Filing by an Experienced Roseville Bankruptcy Lawyer May Be Able to Protect Your Home from Foreclosure
Facing the foreclosure of your home is a terrible feeling that can lead to sleepless nights and a feeling a powerlessness. However, homeowners should always explore their options before assuming the worst. Chapter 13 bankruptcy may provide the means for you to save your home from foreclosure. To schedule a free and confidential consultation at the Roseville location of The Bankruptcy Group, call 1-800-920-5351 or contact us online today.