Can an Emergency Bankruptcy Filing Stop a Home Mortgage Foreclosure in Sacramento?
Years of hard work and playing by the rules allowed you to purchase the home of your dreams, a home whose very foundation was built upon the numerous memories you’d created with family and friends. This place has become a part of you. However, a financial tragedy might have struck, and you may have fallen significantly behind on your home mortgage. Perhaps this has caused sleepless nights for you, or maybe the problems seemed to spring out of the blue; either way, coming to terms with the fact that you’re facing a foreclosure proceeding is the first step to dealing with the problem.
The good news is that just because you face foreclosure, it does not guarantee that you will lose your home. That being said, individuals who fail to take action in a timely manner can make this a self-fulfilling prophecy. It is essential, then, that you take timely action to address the home foreclosure process before this proceeding moves too far along.
The compassionate and strategic bankruptcy attorneys of The Bankruptcy Group have worked with many homeowners who are facing foreclosure. Quite frequently, they have been able to stop the foreclosure with legal action or through negotiation with the mortgage holder. Still, the longer the homeowner takes to seek help, the less time there is to attempt to prohibit foreclosure. To schedule a confidential consultation, call The Bankruptcy Group at 1-800-920-5351 today.
What Is the Home Foreclosure Process in California?
If you have already performed some preliminary research on home foreclosures, you likely discovered that there are two typical processes for one. The first is a judicial foreclosure and the second is a non-judicial foreclosure. In California, foreclosures proceed along the non-judicial track. What this means is that your loan documents likely authorized and described this process. Essentially, the mortgage company does not have to go before a judge to secure authorization to proceed with foreclosure. While the mortgage company does not need a judge’s approval, there are certain legal notice requirements the company must follow. This could allow the homeowner time to negotiate or to take other steps to stop the foreclosure.
The foreclosure process commences when a Notice of Default is served upon the homeowner. The Notice of Default will generally set forth the process and your rights in the process. Additionally, the Notice of Default will start the clock on a three-month window that must elapse before the mortgage holder can schedule and advertise a date for the property to be sold. In addition to the three-month waiting period, the mortgage holder must wait 21 more days to hold the actual sale following the publication of the sale.
Can Chapter 7 or Chapter 13 Bankruptcy Protect My Home from Foreclosure?
Many people want to know if bankruptcy is an effective option to stop a foreclosure. Upon hearing that bankruptcy can serve as a preventative of foreclosure, they generally want to know what form of bankruptcy will most likely save their home. As a starting point, we can say that Chapter 7 bankruptcy is typically not well-suited to stop a home foreclosure when significant equity is present, because it’s designed to handle unsecured debts like credit card bills. Luckily, Chapter 13 bankruptcy is often effective at stopping a foreclosure and protecting other property throughout the process.
Under Chapter 13 bankruptcy, an individual works with a lawyer to develop a three-to-five-year plan where debts owed to creditors will be repaid. Thus, the plan offers an individual up to 60 months to catch up on their bills, mortgage, and other debts. Creditors have the right to challenge the Chapter 13 plan, however most reasonable plans are accepted.
It is important to note that working through a Chapter 13 plan requires financial discipline; you must make not only regular payments on the mortgage and other bills, but also make payments to cover those bills that are already in arrears. Though, if the debtor is able to satisfy the three-to-five-year plan, any remaining unsecured debts are typically just charged while the individual keeps property like a hole. Through this process, an individual can protect his or her home while gaining a fresh financial start.
Is Chapter 13 Bankruptcy Effective if I Have a Second or Third Mortgage?
If you have a second or third mortgage, you may fear that Chapter 13 bankruptcy will be less effective or otherwise insufficient to save your home. In certain circumstances, Chapter 13 can use a powerful tool known as lien stripping to remove certain mortgages from the home and to treat them is unsecured debt. Under the bankruptcy code, unsecured debt receives the lowest priority in Chapter 13–meaning you can save significant amounts of money while protecting your home.
Work with a Compassionate and Strategic Sacramento Bankruptcy Attorney to Protect Your California Home from Foreclosure
Facing foreclosure is a stressful and anxiety-inducing time. However, homeowners who maintain their cool and work proactively to stop the foreclosure can usually protect their homes and get on paths to healthy financial futures. The lawyers of The Bankruptcy Group can provide insight and guidance into a possible path for you. To schedule a free and confidential consultation, call The Bankruptcy Group at 1-800-920-5351 today.