If you have obtained a foreclosure notice from your mortgage, you may still be able to save your home by filing for default in Chapter 13—as long as you can meet the conditions for a confirmable repayment plan. Chapter 13 prevents eviction and allows you time to fix your default mortgage.
Just because you have a foreclosure notice, it doesn’t mean that the bank would immediately sell your home. -The state has different laws that set out foreclosure procedures that must be followed by the lender.
Many states require lenders to bring an action before the state court to foreclose the house in a process known as a judicial foreclosure. Others allow the lender to circumvent the courts utilizing a simplified procedure known as non-judicial foreclosure.
In any case, the lender can give you a notice of the foreclosure before selling the house. The seller’s amount of time has to wait until the sale varies by state and may be as short as a few weeks. If you receive a foreclosure notice from your mortgage, review it carefully to see how long you have until the lender auctions your property. You’re going to want to start taking steps as soon as you can.
When you file for default in Chapter 13, an order called an automatic stay prohibits the lender from making a foreclosure sale. Automatic stays prohibit most creditors, including your mortgage lender, from making any collection attempts without first receiving further court approval. You’ll have a chance to save your house as long as it’s not sold at a mortgage sale.
In addition to stopping foreclosure auctions, Chapter 13 Insolvency also allows you the right to repair your default mortgage and save your property. When an automatic stay is in place, you can make up for your missed mortgage payments with your Chapter 13 repayment plan.
You will earn the backlog by paying the bankrupt trustee every month. In return, the trustee will provide your lender with the monthly installment payment defined in your contract. You’re also going to have to make your regular mortgage payments when you repair your default. You will not be in default and remain at home until you make all payments under the contract.
© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.
