Foreclosures due to delay in payments can be a harsh thing to experience. While foreclosure proceedings vary, there are still privileges left for the borrower to fend off the seizing of their properties.
If you feel like you’re being unlawfully pushed into a corner, it might be a great idea to lawyer up. Not only can this delay the seizing of the property, there’s also a chance for a reprieve on the part of the lender. You may also use legal means to defend against foreclosures. Utah Bankruptcy Pros says your ability to pay and the complexity of your case may impact the cost of your bankruptcy.
File a Bankruptcy at the Last Minute
If the warning of foreclosure is bound to happen at any moment, you can stop this embarrassing problem before it even starts by filing for bankruptcy. There’s an “automatic stay” provision in the law that takes effect when a person was recently bankrupted, enabling you to stay in your home. While this won’t totally deter the foreclosure itself, this will give you time to sort out other options. Expect a month or two before the foreclosure resumes.
The Hostile Bankruptcy Chapter Provision
One of your choices to keep the home is to file a Chapter 13 Bankruptcy. This move allows you to keep your property by repurposing your debts. The process will change your repayment terms, extending it over a period of three to five more years.
It’s not advisable that you perform a loan adjustment in the last minute, as this can be a complex financial action. But, if you do, your lender will be required to stop the foreclosure to avoid dual-tracking. Since you’re in the process of restructuring your mortgage, the grounds for foreclosure will also have to be remedied.
There are ways to fend off a foreclosure. But, to be sure, investing in the support and expertise of a legal professional is more beneficial in the long run.