Placer County, CA, Mortgage Foreclosure Defense Lawyer
Buying a home, whether it is your first home or not, is a joyous achievement. That is why facing foreclosure on your home can be a devastating ordeal for you and your family. Fortunately, depending on your circumstances, you may have options to fight against a foreclosure to keep the property you worked so hard to attain. If you or a family member are concerned about losing your home in foreclosure, you should consult with an experienced Placer County foreclosure defense attorney today.
The legal team at The Bankruptcy Group are dedicated to helping you explore every viable option to protect your home from foreclosure. We understand how a sudden change in circumstances can affect your ability to keep up with mortgage payments and we are here to stand with you. You should not have to lose the home you worked for due to circumstances that were out of your control. To schedule a free legal consultation to discuss your case, call The Bankruptcy Group at 888-710-4334, or contact us online.
Methods For Defending Against Foreclosure
If your home is facing foreclosure, there are a variety of defense options that can be used to prevent the process. While many of these options still require you to continue to pay your mortgage, they may be able to alter the terms of repayment to a more manageable form. The following is a list of mortgage foreclosure defense options.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is useful to homeowners facing foreclosure if they have more than limited equity. Chapter 13 Bankruptcy allows a debtor to gather and reorganize their debts. This is different from Chapter 7 bankruptcy’s liquidation plan. Under Chapter 13 bankruptcy, you can protect your assets by creating a repayment plan. A Chapter 13 repayment plan allows a debtor to consolidate their debts to make a single monthly payment that is given to the court and then distributed to the debtor’s creditors.
Filing for Chapter 13 bankruptcy will place an automatic stay on all collection efforts against a debtor. This means that collection letters and phone calls will temporarily halt. During this time, the debtor should begin creating a plan to repay their debts.
A Chapter 13 repayment plan typically has a three to five year term where the debtor must repay their debts. The reorganization plan must be approved by creditors and the bankruptcy court. If approved, this plan may decrease the amount of payments needed for a certain debt, which can increase the amount you can pay towards your mortgage.
Before you file for foreclosure, you should speak with an experienced attorney to determine if that is the best option for you. Filing for Chapter 13 bankruptcy also requires a debtor to go through several steps. For example, you must have an examination of your disposable income to determine whether you qualify for a Chapter 13 repayment plan. Additionally, you may have to complete a credit counseling course that is authorized by the Department of Justice.
Mortgage Modification
Mortgage modification is another option for avoiding foreclosure. While this process can be started as part of a bankruptcy filing, it can also be used before a bankruptcy filing. Mortgage modification allows a debtor to alter certain terms of their mortgage. However, this process also requires having a lender that is flexible in regard to payment terms.
The extension of your mortgage repayment schedule is one option that could be considered with mortgage modification. Other options that can be used include:
- Decreasing the amount of interest owed
- Adding any arrears or penalties into the principle of the mortgage
Pre-Foreclosure Forbearance
A pre-foreclosure forbearance is an agreement where a lender will delay the sale of a home for a certain period of time to allow a debtor to make large payments towards the mortgage. Many forbearance agreements will extend the foreclosure deadline for about six months so that a debtor could gather money to repay the lender. Like mortgage modification, this also requires negotiating with a lender who is open to other repayment options. This is why it is important to retain a lawyer that can help negotiate a deal that is desirable to you and your mortgage lender.
Our Placer County, CA, Mortgage Foreclosure Defense Attorneys are Ready to Represent You
If you and your family are in danger of losing your home to foreclosure, you should contact an experienced California mortgage foreclosure defense attorney. The foreclosure attorneys at The Bankruptcy Group possess extensive experience litigating a variety of foreclosure cases, and we will use that experience to aggressively represent you. Foreclosure can be a complex and difficult process, but we are here to guide you through. To schedule a free legal consultation, contact The Bankruptcy Group at 888-710-4334, or contact us online.