You could save your home if you file for bankruptcy if you get a foreclosure notice from your bank as long as you follow the payment plan requirements for a verifiable payment plan. Chapter 13 prevents forecasting and will allow your default mortgage time to correct. Learn all about saving your home in Chapter 13 if your lender decides to default.
Right after you get a foreclosure notice, the bank doesn’t sell your house immediately. Each State has different laws that set out the foreclosure procedures to be followed by the lender.
Some countries require lenders to file a lawsuit with a state court to have their home barred in the so-called foreclosure courtroom. Others allow the lender to bypass the court in a simplified process called extrajudicial foreclosure.
In any case, the lender must tell you about the foreclosure before selling the property. The lender’s waiting time to sell varies by State and may be as short as a few weeks. If you receive a warning from your trustee, check carefully to see how long you have before the lender auctions your home. You’re going to want to drive as fast as possible.
When you file for bankruptcy, the lender can not sell the mortgage under the auto-hold agreement. Auto-stay prevents the collection of most creditors, including your mortgage lender, without special judicial authorization. You have the power to save your home before it is forbidden to do so.
Chapter 13 not only gives you the chance to delay the selling of the foreclosure but also offers you the opportunity to restore your default mortgage and save your home. When self-stay is in place, you will make up your mortgage payments for your Chapter 13 payment plan. Your plan will work for up to five years, and it’s an inexpensive way to correct your error for a longer time.
Here’s the process: you will make up for your arrears by making monthly budget contributions to the insolvency administrator. In return, the trustee will provide your lender with the monthly loan payment defined in your agreement. You will continue to make your monthly mortgage payments as you heal your loss. You’re no longer defaulting because you’ve made all payments to the account and can keep your house.
© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.
