When a home owner falls behind on their mortgage payments, lenders often call to talk about alternatives that are available to avoid foreclosure, such as loan modifications or short sales. However, lenders usually don’t discuss legal options that stop foreclosure and give the homeowner time to pay back any missed mortgage payments.
When a lender starts the foreclosure process, homeowners need to know that a court order will immediately stop a sale. A homeowner can file bankruptcy to stop foreclosure right up to the time of the auction. Once a bankruptcy is filed; it stops the foreclosure and any foreclosure proceedings. Filing chapter 13 makes it possible for the homeowner to start paying the mortgage and repay any missed payments.
How chapter 13 bankruptcy helps:
- Filing chapter 13 bankruptcy immediately stops foreclosure at the moment it is filed with the court
- Chapter 13 stops creditor harassment and usually eliminates credit card and medical debts
- Chapter 13 bankruptcy can eliminate any second or third mortgages
- Chapter 13 allows a homeowner to repay missed mortgage and car payments in a 3-5 year repayment plan
- Chapter 13 forces the lender to accept monthly mortgage payments, even when the lender refuses to accept any mortgage payments after a homeowner defaults.
For any homeowner facing foreclosure, an experienced bankruptcy attorney can advise whether it makes sense to file chapter 13 bankruptcy. The homeowner has to be able to afford their mortgage payments, in addition to setting up a repayment plan for the missed payments.
A bankruptcy attorney will propose a repayment time, and make sure that the payments are affordable during the repayment plan; so as to avoid any future foreclosure.
There are many benefits to filing bankruptcy, but the process is complicated and it is a good idea to find a bankruptcy attorney Los Angeles based, with a solid track record of confirmed cases in California. A strong bankruptcy lawyer needs to understand the interplay between your bankruptcy and foreclosure; and know when it is best to file a lawsuit instead of bankruptcy.
If you are facing foreclosure, you should immediately seek the services of a Los Angeles bankruptcy attorney to stop the foreclosure before it’s too late. A delay can cause the loss of your home; we recommend you talk to our bankruptcy lawyers for free and take action immediately to save your home.