Placer County, California Emergency Bankruptcy to Stop Home Foreclosure Attorneys
Falling significantly behind on your mortgage and other bills may bring up fears of foreclosure. If you have already received a Notice of Default, then those fears appear to have transformed into a reality. The foreclosure of one’s home is a difficult and trying experience for any homeowner. We work hard to buy and maintain our homes. Moreover, we develop a significant attachment through the memories we create. Discovering that we are subject to foreclosure is often the source of depression and anger. In certain cases, however, foreclosure can be stopped through negotiation or through the bankruptcy process.
The bankruptcy attorneys of The Bankruptcy Group can work with homeowners to find potentially effective strategies to stop a home foreclosure. This may include bankruptcy or other legal action or even non-legal methods including working with your creditors. If you’re worried about the loss of your home due to a foreclosure, schedule free and confidential consultation at The Bankruptcy Group by calling 1-800-920-5351 today.
Understanding the California Foreclosure Process and That It Might Not Be Too Late to Stop Foreclosure
There are generally two pathways along which a foreclosure can proceed. Individuals who have begun researching this issue probably come across the terms judicial foreclosure and non-judicial foreclosure. A judicial foreclosure means that the bank or mortgage company must go before a judge to get approval to begin the foreclosure process. A non-judicial foreclosure, on the other hand, does not require permission. Authorization for a non-judicial foreclosure is probably described and permitted in your mortgage documents that you signed at the purchase of your home. In California, foreclosures proceed along the non-judicial path.
The foreclosure process begins when the homeowner received a Notice of Default from the mortgage company. This notice default will not appear overnight and will typically require the homeowner to fall at least several months behind on his homework mortgage before the foreclosure proceedings will begin. Upon receipt of the Notice of Default, the clock begins to run on a 3-month period where the mortgage company cannot take further action regarding the foreclosure sale. Once that window elapses, the mortgage holder can schedule a foreclosure sale. However, three full weeks or 21 days must pass before the actual sale can be held. As you can see, even if you’ve already received a Notice of Default, there may be time to take action as long as you don’t delay.
Should I Consider Chapter 7 or Chapter 13 to Stop the Foreclosure of My House?
Upon hearing that bankruptcy may offer a solution to their foreclosure concerns, people are understandably excited to learn about what form of bankruptcy is best suited to stop it. While bankruptcy is not the solution for everybody, it is an important tool can be used to stop a foreclosure. Generally, most consumers are aware of the fact that Chapter 7 and Chapter 13 are the two main forms of bankruptcy, but may be a bit fuzzy on the exact details of each.
While Chapter 7 is very effective at dealing with unsecured debts, it is not particularly effective at handling a foreclosure in all circumstances. Chapter 7 is extremely well-suited for handling and discharging credit card debts. So, if you have significant credit card debts and your home is sufficiently protected by California bankruptcy exemptions, Chapter 7 can still be an option. For those where the equity in the home is not sufficiently protected, the lender is not willing to negotiate, or the homeowner “means tests” out of Chapter 7, Chapter 13 may be a more viable option.
Under Chapter 13, an individual develops a three-to-five-year payment plan with his or her attorney. With this payment plan the individual can generally keep the property (s)he wishes to keep and relinquish the property that (s)he does not wish to retain. One must pay back the debts that are currently in arrears, along with current payments on the mortgage and other bills. Thus, following a Chapter 13 plan requires a good deal of discipline. Still, if the individual can complete the plan successfully, (s)he will be provided with a fresh financial start.
Chapter 13 Can Assist with Homes Where There Are Second and Third Mortgages
Chapter 13 has a unique feature not found in Chapter 7 known as lien stripping. If a decrease in the value of the home has occurred or there is insufficient equity, Chapter 13 can remove certain junior mortgages as secured debt. The date is reclassified as unsecured debt, which receives the lowest repayment priority under Chapter 13 of the bankruptcy code. This can lead to a substantial cost savings for homeowners while simultaneously protecting their home from foreclosure.
The Bankruptcy Group Fights to Protect Your Home from Foreclosure
If you are facing a home foreclosure in Roseville or Placer County, the lawyers of The Bankruptcy Group can fight to protect your house. To schedule a free and confidential consultation, call The Bankruptcy Group at 1-800-920-5351 today.