The Foreclosure Process: How Does It Work?
Whenever a person buys a house, he or she typically takes out a mortgage loan. A mortgage loan is a debt that is secured by the home and is paid off over the next 15 to 30 years. As with any debt, there are serious consequences if a homeowner defaults on their mortgage. Here’s a brief overview of the foreclosure process and how a bankruptcy attorney can help you if you’re facing it:
- Missed Payments: Every foreclosure starts the same—with a missed payment. Most mortgage lenders give their clients a 15-day grace period to make a missed payment—after that, late fees start accruing. If you believe that you’re going to miss a payment, it’s a good idea to speak with your lender early on. After you explain your situation, you may be able to work out a loan modification.
- Foreclosure Notice: After three to five months of missed payments, the lender will give the borrower a notice of intent to foreclose. What follows is a drawn-out process that involves the courts.
- Eviction: After several months, the foreclosed home will likely be auctioned off to the highest bidder, or the deed will revert back to the lender. In either case, the former borrower will be forcibly removed from the home.
Though the foreclosure process may seem harsh, you should know that there are several alternatives. One alternative is to file for bankruptcy early on in the process. Once you file for bankruptcy, the court will issue an automatic stay that halts all creditor action against you, including foreclosure. If you file Chapter 13 bankruptcy, you may even be able to make up your delinquent payments and keep your home.
If you need help filing for bankruptcy in order to halt the foreclosure process, contact Low & Low Bankruptcy Lawyers. Call us today at (201) 546-5753.
Disclaimer:
The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.
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