A homeowner suffering from financial hardships may find it difficult to make their mortgage payments, which may cause complication with the lending institution and possibly lead to a foreclosure. However, the law provides legal rights to homeowners to present their case before the process of foreclosure process begins.
Thus, an individual facing the threat of foreclosure should consider hiring a skillful foreclosure defense lawyer to either delay or prevent the foreclosure process. An attorney may employ several foreclosure techniques to defend the rights of the homeowner. One great strategy that can help an individual to stop a foreclosure of a home is filing for bankruptcy.
Using Bankruptcy as a Foreclosure Defense
Once an individual declares bankruptcy, an automatic stay on foreclosure is initiated as per the law. Thus, taking this route causes the lending institution to stop all the methods that they are employing to foreclose on your house.
That being said, bankruptcy should not be your only strategy to prevent foreclosure because it is not the long-term solution to the problem and the lending institution may obtain permission from the court to continue with the foreclosure process, and in that case, it will be only a matter of time when your house may be subjected to foreclosure through auction or another method.
There are 2 types of bankruptcy that an individual may file to prevent foreclosure. The Chapter 7 bankruptcy can buy time for the homeowner by putting a temporary stop on foreclosure proceedings. However, its ability to ultimately save your house from foreclosure is restricted.
On the other hand, chapter 13 bankruptcy may provide greater protection to a homeowner and help them to keep their house as it permits them to restructure their accrued debt and liabilities so that they can be paid off in a span of 3 – 5 years.
The duration of the repayment plan may vary upon the state laws and specific circumstances pertaining to the case. But the important thing is that this bypasses the foreclosure process and enables the homeowner to stay in their house during the plan.
Furthermore, chapter 13 bankruptcy may also help in reducing the liabilities that are accrued over time, which will lessen the financial constraint from the shoulders of the homeowner, making it easier to make their mortgage payments on a timely basis. Moreover, it will provide sufficient time for homeowners to cure their delinquent mortgage payments.
However, there are some eligibility requirements that must be met before filing for bankruptcy, thus procuring services of an experienced foreclosure defense lawyer can be highly advantageous for your case.
An astute foreclosure defense lawyer will use multiple foreclosure defense strategies such as improper service, right to redemption, lack of standing or notice, loan modification, among others, to prevent foreclosure without having to file for bankruptcy.
If you wish to get more information about this subject or schedule a free consultation, contact Jackson Abdalla Law Group at (773) 550-3853 to speak with an experienced foreclosure defense lawyer.