Sacramento Mortgage Foreclosure Defense Lawyer
Your home is arguably your most important asset. In it, you have made memories to last a lifetime. That is why it is easy to be scared when your creditors are threatening to take it away from you through foreclosure. At The Bankruptcy Group, we know how important your home is to you, and we can help you protect your house from being foreclosed.
If you or someone you know are facing a foreclosure, we may be able to help. Do not wait another minute and get in contact with one of our Sacramento mortgage foreclosure defense lawyers today at 1-800-920-5351.
Common Causes of Mortgage Foreclosure in Sacramento, CA
Mortgage foreclosure is a legal process that occurs when the debtor fails to timely pay a creditor for a loan that was supplied to purchase a home or other real estate. Specifically, if the mortgagor (the debtor) defaults on the loan to a bank or other creditor, the creditor can foreclose on the mortgage to reclaim the estate. As a result, a homeowner could be placed in a problematic position wondering how they can reclaim their home.
Defaulting on a mortgage is more common than you might believe. The following is a list of common causes of mortgage foreclosure.
Death of a Family Member
Dealing with the death of a spouse or other family member can be traumatizing for a family. This experience could be even more difficult if the decedent were responsible for the majority or a percentage of monthly expenses for a family. The surviving family would have to bury their loved one and find a way to replace the income the decedent provided. Under these circumstances, it would be easy for a default on the mortgage to occur because a surviving spouse and family may not have the means to handle the debt.
If spouses decide to divorce, determining who will keep the marital home is an important factor. However, this decision can also be a burden on a spouse. If both spouses were sharing the mortgage expenses, the spouse who keeps the home would now have to maintain the property alone. When combined with the costs of divorce and other monthly expenses, a divorcee could be overwhelmed and could default on the mortgage.
The COVID-19 pandemic has impacted people across the United States. With nearly two million cases at this time and more than 100,000 deaths attributed to the virus, many are concerned about the future.
Homeowners who have lost their jobs due to the coronavirus may not be receiving sufficient compensation from unemployment benefits. As a result, this could make it impossible to pay a mortgage and have enough for other essential needs. Our firm understands the burden of trying to save your home from foreclosure, and we are here to work with you.
There are many other causes of foreclosure that are not discussed above. To learn more about what actions to take to prevent the foreclosure of your home, you should continue reading and speak with an experienced Sacramento mortgage foreclosure defense attorney.
Protecting Your Home from Foreclosure
In recent years, we have witnessed how the economy has placed many individuals under financial duress. As such, many people have struggled to keep up with their financial obligations. This includes meeting their mortgage payment obligations. As a result of default, many people have lost their homes to foreclosure.
Foreclosure is a legal process through which a creditor exercises their right to recover what a debtor owes. In short, if you stop making your payments to your lender, they can go after your home. This means your lender will try to take over your property and force a sale to recover the balance you owe.
You may wonder how will you be able to protect your home from being foreclosed. Fortunately, there are ways you can protect your home from your creditors and opportunities for a new financial start.
Bankruptcy can be an excellent alternative to manage your debt and prevent your home from being foreclosed. When you file for bankruptcy, you get the benefit of what is called an “automatic stay.” The automatic stay prevents your creditors from taking collection actions while the bankruptcy process is in effect. However, there are exceptions to this general rule.
While generally, creditors cannot reach out to collect any existing debt during bankruptcy, certain obligations are not protected by the automatic stay depending on what bankruptcy chapter you file for. For instance, if you currently have child support obligations, you must keep making your payments without delay. Additionally, actions to modify your child support obligations will not be protected by the automatic stay. If you run into trouble with crime, an automatic stay cannot stop any legal proceedings or fines against you. Our knowledgeable bankruptcy lawyers can help you determine whether an automatic stay can help with your particular case.
How Bankruptcy Can Prevent Mortgage Foreclosure
Foreclosure proceedings can make any person worried about how they can avoid losing their home. Fortunately, there are some options that can help a person avoid a foreclosure on their home. Bankruptcy is one of the most common options used to deal with foreclosure. While this may seem like an extreme option, bankruptcy can allow you to keep your home and other property that you value.
One of the benefits of filing for bankruptcy during a foreclosure is the “automatic stay” placed on creditors. An automatic stay prohibits creditors from pursuing debts from a person while they are engaged in the bankruptcy process. This provides a debtor with a needed reprieve to get their finances back in order.
Chapter 7 bankruptcy and Chapter 13 bankruptcy are the most common forms of bankruptcy that are filed by a debtor. Chapter 7 bankruptcy requires a debtor to liquidate various assets in order to repay creditors. When a debtor completes a Chapter 7 bankruptcy, they can discharge a large portion of unsecured debt like credit card bills, medical bills, and various other expenses.
Chapter 13 bankruptcy allows a debtor to create a repayment plan to pay off creditors and avoid a loss of property. A repayment plan typically lasts from three to five years in which a creditor must make monthly payments to creditors.
The Bankruptcy Group can help you determine what form of bankruptcy would meet your specific needs.
How Can Our Bankruptcy Lawyers Help You Stop Foreclosure?
People who wish to file for bankruptcy can do so without the help of an attorney. This is what is known as filing pro se. While courts may allow you to represent yourself in the bankruptcy process, it is best to be represented by a qualified bankruptcy attorney.
Filing for bankruptcy requires more than just merely submitting your petition with the court. Representing yourself in a bankruptcy case requires you to have knowledge of bankruptcy law and the complexities surrounding your financial issues. Furthermore, it needs you to have a profound understanding of the federal court’s rules and procedures, bankruptcy procedures, the U.S. Bankruptcy Code, and other legal matters.
A mistake in your application, or during the bankruptcy process can hurt your chances of success. Our skilled, knowledgeable bankruptcy lawyers can help you by taking the following steps:
- Advising you whether filing for bankruptcy is your best option
- Explaining bankruptcy law
- Advising you on which chapter you should file for bankruptcy under
- Assisting you with completing the appropriate forms
- Filing essential documents with the court
Getting help from a qualified bankruptcy lawyer can help you assess your financial situation, make an informed decision, and prevent your case from being dismissed based on an error. Once qualified for bankruptcy, you can take advantage of the benefits offered by the automatic stay. Additionally, a bankruptcy can help you manage your finances and pave the way for a new financial start.
For instance, depending on the type of bankruptcy you file for, you can have most of your non-secured debt wiped. This is one of the benefits offered by filing for bankruptcy under Chapter 7. Additionally, you can meet your financial obligations by complying with a repayment plan under Chapter 13. Our experienced bankruptcy attorneys can help you determine which chapter is the best option based on the circumstances surrounding your financial situation.
Mortgage Foreclosure Defense Lawyer Offering Free Consultations in Sacramento
If you or a loved one is going through a difficult financial situation, our Sacramento mortgage foreclosure defense lawyers at The Bankruptcy Group may be able to help. Our experienced, skilled bankruptcy lawyers understand that losing your home to foreclosure after facing a financial burden is not an option. Let our knowledge and experience help you during this difficult time. To learn more about your case in a free, confidential consultation with one of our mortgage foreclosure defense attorneys, call our law offices today at 1-800-920-5351, or contact us online.