Stopping a Foreclosure Sale with a Bankruptcy Filing

How does foreclosure work? Foreclosure is a legal process that lenders go through in order to auction off a home if the owners have fallen behind on mortgage payments. Usually you will have to be three or four payments behind before the bank will begin the process of foreclosure in Jacksonville. Foreclosure is a several month long process before you will be forced out of your home. If you are several months behind on payments or have already received a notice of foreclosure, you should contact a Bankruptcy Law Firm in your area to determine if filing bankruptcy will help you keep your home.

There are two reasons you might consider filing bankruptcy to stop your foreclosure. Maybe you are several months behind and your mortgage company is requiring the entire back amount to stop foreclosure, or you know you are going to lose your house but you need a few more weeks or months to make other living arrangements. Depending on your situation there may be different ways to go about slowing or stopping foreclosure. As soon as you file for bankruptcy, you are protected by what is called an “automatic stay”. This means that your creditors have to stop asking for and accepting payments from you during this period of bankruptcy. It also freezes the foreclosure for at least a few months. But keep in mind, it is possible for your mortgage holder to ask the courts for a lift of the stay and proceed with the foreclosure sale anyways. For this reason it is very important to hire a Bankruptcy Lawyer as soon as you are at risk of foreclosure. You may still have time to try other options before considering bankruptcy.

If you know you cannot afford your home, but do not have any money to move any where else at the moment bankruptcy may give you time to figure it out. This type of strategic bankruptcy is risky and should only be done with the help of bankruptcy lawyers who can help you through the process and explain the risks you are taking.

If you wish to keep your home, then filing for Chapter 13 bankruptcy may help you do so. Everyone’s situation is different and only a bankruptcy attorney can tell you how Chapter 13 will affect you. However, here are a few ways that filing Chapter 13 might help you. If your home is worth more than you paid for it then you may have the option of discharging debt from second and third mortgages. If your mortgage holder wants you to pay all of your back payments to avoid foreclosure, then the several months when you have an automatic stay may allow you to come up with the money, or you may be able to pay the back payments off slowly over a longer period of time (usually up to five years).

If you are worried that you are at risk of foreclosure in Miami, it important that you contact bankruptcy law firms as soon as possible to see if Bankruptcy in Miami is an option. If you wait until the last moment, you may not be able to stop the foreclosure and save your home.