Options To Retain Your Home:
The following options may result in retaining ownership of your property.
- Repayment Plan: This involves establishing a schedule with your servicer to make a full monthly payment plus extra each month in order to repay the delinquent amount over a specified time period.
- Special Forbearance Plan: This option may provide for a temporary reduction or suspension of payments. In order to repay the delinquency, future payments will be increased once the plan is completed.
- Mortgage Modification: This option allows you to modify the current terms of your mortgage.
- HAMP Modification: FHA insured loans may be eligible for a HAMP loan modification with a partial claim.
- Refinance: This option allows you to use the equity that you have established in your home to pay the delinquent amount. Depending on the interest rate of your new loan, your monthly payments might be reduced. You can explore refinancing with a lender of your choice. More about PHFA’s refinance options.
- Homeowners’ Emergency Mortgage Assistance Program: HEMAP provides financial assistance to Pennsylvania residents who face losing their primary residence through foreclosure. Depending on your situation, you may be eligible to receive a LOAN to bring your mortgage payments current . Depending on your circumstances, you may be eligible to receive financial assistance with your monthly mortgage payment for up to 24 months from the date of default. More about HEMAP / Act 91.
File For Bankruptcy To Stop The Foreclosure
If a foreclosure sale is scheduled to occur in the next day or so, the best way to stop the sale immediately is by filing for bankruptcy.
The automatic stay will stop the foreclosure in its tracks. Once you file for bankruptcy, something called an “automatic stay” immediately goes into effect. The stay functions as an injunction prohibiting the bank from foreclosing on your home or otherwise trying to collect its debt. So, any foreclosure activity must be halted.
The bank may file a motion for relief from the stay. The bank will probably attempt to have the stay lifted by filing a motion seeking permission from the court to continue with the foreclosure. Even if the bankruptcy court grants this motion and allows the foreclosure to proceed, the foreclosure will be delayed at least a month or two. This should provide you with time to explore alternatives to foreclosure with your bank.
Learn What to Doand What Not to DoIf You’re Facing a Foreclosure
For tips on what to do, and what not to do, when facing a foreclosure, see Foreclosure Do’s and Don’ts.
Filing Chapter 13 To Keep Your Home And Avoid Foreclosure
Chapter 13 bankruptcy is often referred to as the wage earners plan, and it can be a good solution for those who are buried in debt but still have a steady income. Chapter 13 bankruptcy does not hinge on eligible assets being sold off to pay the debt. Instead, Chapter 13 bankruptcy allows petitioners to agree to a three-to-five-year repayment plan . By following the repayment plan and all the predetermined conditions of the Chapter 13 bankruptcy, the filer can receive a discharge of the remaining debts included in the plan. Most importantly for those facing foreclosure, the Chapter 13 bankruptcy can end with the filers homeownership intact since the repayment plan can incorporate missed mortgage payments. By incorporating the missed mortgage payments into the repayment plan, the Chapter 13 bankruptcy gives homeowners the chance to bring their mortgage current with the lender.
If you have questions about filing Tennessee or Georgia bankruptcy to help stop a foreclosure on your home, contact an experienced bankruptcy attorney. Dont hesitate to call Kenneth C. Rannick, P.C., Tennessee, and Georgia bankruptcy attorney. We help good people through bad times.
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Option #5 Bring Your Case To The Court
If you are sure your lender broke any laws or legal procedures during foreclosure or lending process, there is a chance to fight foreclosure in the court. Suspecting that the lender acted unethically at any time, or maybe even illegally, contact your foreclosure lawyer to create a perfect strategy of behavior in court. If the lender cant prove the legacy of all his actions, youll probably win the case easily.
In case of success, the foreclosure process will be delayed or stopped. After that, youll have a real possibility to rescue your house.
If you are risking to lose your real estate property, you should check all the options to save it. Facing such situations is stressful, but there is always a way out of it. Remember, the earlier youll take the necessary steps, the more chances to succeed youll have. Whenever it happens, dont just sit and wait. Call your New York foreclosure defense lawyer to find out which option is the best for you.
You might be able to halt the foreclosure process and save your residence. Delaying or avoiding the problem will just make preventing foreclosure harder. There are a few other strategies to acquire financial support to prevent foreclosure.
You truly can stop foreclosure and save your house. Its essential that the home sticks out from the other homes. Individuals can surely become wealthier without owning a house, but, typically, they dont.
SEE ALSO
How To Stop Foreclosure And Save Your Home
Wondering how to stop foreclosure? If youre more than 90 days behind on your mortgage payments, your lender is probably knocking on your door right about now. The good news? You wont lose your home overnight. There are multiple ways to stop foreclosure and protect your homeor, at the very least, your credit.
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How To Stop Foreclosure In Kansas
There is hope of avoiding foreclosure or even stopping the process before your house makes it to a Sherriffs Sale. Filing bankruptcy can give you the power to save your home if you have fallen behind in making payments on your home mortgage. By filing for bankruptcy you have an automatic stay that goes into effect, this stops or may halt pending Sheriffs Sales and can also stop foreclosure processes. It is important to consult with a foreclosure lawyer in Topeka to find the best options for you.
AChapter 13 bankruptcy can benefit you by:
- Allowing you to make up mortgage arrears through a plan, usually 3 to 5 years
- Removing second mortgages in some circumstances
- Granting you anautomatic stay preventing foreclosure and all collection action
Chapter 13 bankruptcy is essentially a mortgage repayment plan which allows you up to five years to pay backed mortgage payments by means of an established bill-consolidation plan.
What Is Loss Mitigation
Loss mitigation refers to ways to prevent foreclosure. If youre behind in payments, ask your lender for a loss mitigation application packet. For most servicers, if your application is complete and received at least 37 days before a scheduled sale, the lender must stop all foreclosure activities. If your lender starts foreclosure after you timely submitted your complete application, you have a right to file a suit to stop the sale.
You can also file a complaint with Consumer Financial Protection Bureau at 855.411.2372 or online at: . Keep a copy of your application, attachments, and proof of delivery to prove receipt by your lender. Your lender should also send you a letter telling you whether your application is complete.
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What To Do When You Cant Pay Your Mortgage
If youre struggling to make mortgage payments, you need to swallow your fears and call your lender immediately. It may be possible to save your home through a forbearance or loan modification, says Bill Richardson, district sales manager for The Keyes Company, a real estate agency in Boca Raton, FL.
With a forbearance, a lender agrees to temporarily suspend your payment responsibilities. This is not free moneyitll be tacked onto the end of your loanbut it could give you a chance to get your finances back on track.
If youve had an income change thats created the hardship, the lender might be willing to review your finances and redraft your mortgage, adding time onto the overall loan in order to lower your monthly payments.
The most important thing you can do right now is focus all your efforts on assuring your lender that you can and will repay your home loan, so start making payments immediately and actively seek an appointment with a counselor or your lender to discuss your options, Lerner says.
The U.S. Department of Housing and Urban Developments Home Affordable Modification Program may also be an option for you. Administered by Fannie Mae, the program is designed to keep families in their homes and includes access to free counseling services for struggling homeowners.
Saving Your Home From Foreclosure With Chapter 13 Bankruptcy: The Bottom Line
The bottom line is that the Chapter 13 bankruptcy process should not only not be overlooked when facing home foreclosure, it should very likely be the first option to consider.
Attorney Walter Metzen is a Board Certified Bankruptcy Expert who has assisted thousands of Detroit area clients with Chapter 7 and Chapter 13 bankruptcy for over 28 years.
If you are facing foreclosure, you cannot wait to consult an experienced bankruptcy attorney.
Contact us now to schedule your free consultation.
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Options Where You Dont Keep Your Home
Deed in lieu of foreclosure To avoid foreclosure, you agree to turn over the deed to your home to the lender. In exchange, the lender agrees that you no longer owe any additional debt. The agreement should say that the deed in lieu of foreclosure is in full satisfaction of your debt. This allows you to walk away from the home without a Deficiency Judgment, and without a foreclosure sale on your credit report.
Sell home, negotiate short sale If you are unable to sell the house for an amount that covers your debt because your debt is more than the value of your home, lenders will sometimes agree to a short sale. In a short sale, you sell the house to a third party at fair market value and the lender agrees to accept less than your full debt in satisfaction of the loan. The agreement should say that the lender waives its right to a Deficiency Judgment.
Can You Stop Foreclosure In North Carolina
Foreclosure is one of the most stressful and potentially devastating situations a North Carolina homeowner can face. Not only do you stand to lose your home if your house is foreclosed upon, but your credit score and ability to secure another mortgage in the future can be affected as well. However, if you are behind on mortgage payments, there are still a few options that may be available to you to delay or stop foreclosure.
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Contact Your Lender While There Is Still Time
It is common for homeowners in trouble to postpone acting upon the problem. However, the time to see a foreclosure attorney is early in the process because waiting too long makes the situation worse. You might be uncertain or uncomfortable talking about the situation. Regardless, it is essential to seek help early. You should speak with an attorney about your options as soon as possible. You should also call your lender to check into alternatives, such as a mortgage modification or work out an agreement.
There are two significant reasons why calling your lender earlier on can help you save your home from foreclosure. First, lets remind ourselves lenders dont usually want your house. They have several methods that can avoid foreclosure. In most cases, modifications can be made as long as your financial struggle is not past critical points.
Second, if you contact your lender after or just before the sale, you will have little or no negotiating power. The longer you wait, the worse the alternatives become, and you will have to make more drastic compromises.
Mortgage Foreclosure Vs Property Tax Foreclosure
Mortgage foreclosures are those foreclosures when a party is unable to complete the payment and the lender forecloses the property to recover the money that has not yet been paid. For example, a person bought a home by borrowing money from a bank or a mortgage company. They paid the mortgage for some time, however at some point before the payments would end, they no longer have the money to pay on the note. This is when the lender will have to foreclose their property to recover the money that has not been paid to them.
Meanwhile, property tax foreclosure, also known as Tax Lien Foreclosure, is the government foreclosing a persons property when they are unable to pay their property taxes. If the person does not pay their property taxes for a certain period , the government seizes their property and then sells it to recover the amount of tax that has not been paid .
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Changing Your Mortgage Payments
Take The Case To Chicago Courts
A court action against the lender to stop foreclosure is the last effort most attorneys will suggest you take. Court action can be a time-consuming and expensive process, and there is never a guarantee of the outcome. If you involve court action in fighting foreclosure, it is usually through bankruptcy court or filing a claim of equity.
Bankruptcy
If your financial circumstances warrant bankruptcy, the bankruptcy court may address your foreclosure. If the deed of trust has not been prepared and recorded, there is a potential that the judge can find that the sale is not final and is in fact void at the time of the bankruptcy filing. Foreclosure attorneys often also handle bankruptcy cases or work closely with attorneys who will address the bankruptcy court on your behalf.
Equity
Equity in the legal sense is fairness. You can seek to stop foreclosure based on a lawsuit of equity against the lender. Your attorney would argue all the facts and circumstances of your situation and ask a court to find that foreclosure is simply not fair. If the lender has sought and obtained a decree of foreclosure, courts may not consider an equity case. But if not, an equity suit is an option, but it is an uphill battle and therefore not often pursued.
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Option #2 Negotiate With Your Lender
Ask your lender to help you. Remember, for him foreclosure is a stress too, so he also will be interested in finding another solution. On this stage, negotiation may help a lot. Use special foreclosure services or get a New York Foreclosure Defense Lawyer to represent you. Before the negotiations, assure you learn as much as you can about foreclosure. You should be prepared to the maximum, so neither lender nor creditors cant fool you. Whenever there is anything you dont understand, ask your foreclosure attorney for consultation and preparing the best strategy for you.
Is A Short Sale Or Deed In Lieu Of Foreclosure Better For My Credit Than A Sheriff Sale
Many people ask, Isnt a short sale or deed in lieu of foreclosure better than a sheriff sale on my credit?
To answer this bluntly, no. Unfortunately, if your home is in foreclosure, your credit was already ruined once your loan went into default after missing 3 consecutive mortgage payments.
There is a lot of misinformation on the internet regarding the potential benefits of s short sale or a deed in lieu of foreclosure. I dont recommend either of these two strategies, unless your lender is offering you a significant sum.
Both a short sale and a deed in lieu of foreclosure assume you either didnt qualify for a loan modification, or have chosen not to apply for a loan modification because you want to move out of the home. Sometimes, a homeowner is trying to end the lengthy foreclosure process sooner through either of these two solutions, and that may be another reason to consider either of them.
One factor that make either a short sale or deed in lieu of foreclosure nearly impossible is if there is a second mortgage on the property, which requires you to negotiate with both lenders simultaneously and usually requires the first lender to share some of the proceeds with the second mortgage holder, when at a sheriff sale the second mortgage holder wouldnt receive any funds.
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