When your home is at stake
Stop foreclosure proceedings in their tracks by filing for bankruptcy. Mortgage lenders must stop foreclosure proceedings when you file for bankruptcy before the foreclosure deadline has passed. You can even save your home, if you resume making the regular monthly mortgage payments. If you cannot afford your mortgage, filing for bankruptcy can buy you a few more months in your home before eviction proceedings take place.
Be aware, though, that declaring bankruptcy does not absolve you of overdue mortgage payments. Bankruptcy consolidates the overdue payments so that you can repay past-due mortgage debt over time, in low monthly installments typically lasting three to five years.
Bankruptcy trumps foreclosure
You might ask yourself, "What good will bankruptcy do? I'm going to lose my home anyway." The answer is complicated. You may not know that you are personally liable for the mortgage. That means that if the sale of your home does not cover the cost of the mortgage, you have to pay the difference between the mortgage and the money you received through the sale of your home.
On the other hand, by filing for bankruptcy, you might have a chance to save your home. A classic example is where a homeowner has a second or third mortgage on his or her home. Chapter 13 bankruptcy allows a homeowner to strip off "unsecured" loans or mortgages. So let's say your second and third mortgages add $350 to your monthly mortgage payments. By filing for Chapter 13, you can eliminate that monthly $350, which may be the difference between making your mortgage payment and not being able to pay up on time.
Contact experienced bankruptcy attorneys now for your free debt consultation
Call Jacoby & Meyers Bankruptcy Law and get on the road to a debt-free life. Your debt consultation with one of our bankruptcy attorneys is always free and always confidential. Get started today. Call us at 855.536.9231 or simply use the contact form on this page. The right choice in bankruptcy help today can make a major difference in building a better tomorrow.
Jacoby & Meyers Bankruptcy Law, with convenient locations throughout the United States, has helped more than 75,000 clients eliminate more than $500 million in debt. We look forward to helping you.