Protecting you from a foreclosure
If you starting to get behind on your mortgage or have not made payments for several months, you are at risk of having a foreclosure proceeding started against you. You have options to protect the investment you have in your home. At Solvent, our attorneys understand the options you have when facing a foreclosure.
What is foreclosure?
Foreclosure is a legal process that allows a lender to take back the property from the owner. The lender will look to sell the home and recoup the money owed to the lender. In some instances (especially for a 2nd mortgage), the previous owner will be liable for any remaining money owed on the home.
What are your options when facing a foreclosure?
There are options for you if you are facing a foreclosure. Depending on your situation, you may want to let the home go or keep the home – each situation is unique, and the solution would be tailored to each individual client. Some options include:
- Keeping the home
- Pay the arrears in full before the foreclosure sale
- Work with the mortgage company to modify the mortgage
- File a chapter 7
- HOWEVER, a chapter 7 bankruptcy will not allow you keep the home through the filing of the case. It will stop the sale and you will have to work on the mortgage arrears directly with the mortgage company
- File a chapter 13
- You can file a chapter 13 bankruptcy and pay the mortgage arrears in the chapter 13. This would allow you to keep the home and get it current by making the payments.
- Letting the home go
- Short sale or deed in lieu of foreclosure
- File a chapter 7
- A chapter 7 bankruptcy can stop a foreclosure sale – the bankruptcy must be filed before the sale. Depending on the situation, a person can live in the home 6 months to over a year after the filing of the bankruptcy without having to pay the mortgage.
Solvent’s attorneys can help
If you are facing a foreclosure sale, you have options. It is imperative that you seek solid legal advice when facing a foreclosure. At Solvent, we can help guide you through your options and find one that best fits your goals.
