It’s a myth. If you think you must be three payments or more past due on your mortgage to be in danger of foreclosure, it’s simply not true. Foreclosure is usually filed for one purpose and one purpose only; since you’re not making payments, the lender wants you out of your home so they can sell it at a public Sheriff’s auction. They will apply the proceeds of the sale to the mortgage balance you owe, and then sue you personally for any remaining amount left unpaid.
Although mortgage lenders typically do not initiate a foreclosure until the owner is at least ninety days in arrears, they usually provide only a limited legal grace period. And, frankly, they’re not interested in the reasons you’re behind on your payments. If you’re more than one month behind, most lenders will refuse to accept any more payments unless you can pay the entire amount of both current and past due payments, including any late charges and fees accrued. After two months or more past due, mortgage lenders typically send an official notice stating they have “accelerated” the entire balance on your home mortgage, and you must now pay off your mortgage completely or the lender will foreclose on the loan.
Even if you have already received a foreclosure notice, it may be possible to reach an agreement with the lender to either “cure” the default over a short period of time, restructure or refinance the loan or do a short sale. But, timing is critical. If you have been served with a foreclosure notice, it is vital to resolve the default before the Sheriff’s sale takes place.
Once you were served with foreclosure papers, you entered the home foreclosure “danger zone.” The first thing you must do is verify the date and time set for the sheriff’s sale. You can get that information by calling the sheriff’s office in the parish or county in which your home is located. Remember, with that notice, you entered the home foreclosure danger zone, and if you do not act before your home goes to the sheriff’s sale, it will be too late for anyone to save your home.
Filing a Chapter 13 bill consolidation bankruptcy will stop the foreclosure from going any further. Section 362 of the Bankruptcy Code allows the Federal Bankruptcy Court to issue an “automatic stay,” which legally stops the State Court proceeding and the sheriff’s sale.
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Nothing short of bankruptcy, the most powerful debt relief tool available, is likely to provide relief once you’ve been foreclosed. Through Chapter 13 bill consolidation bankruptcy, we can help you keep your home. But, quick action is critical. Before you can file, you are required to complete a “credit counseling” educational program online. This usually takes about 30 minutes. And, while it is possible to do an “emergency filing” on the day of your first office visit, this is not the best practice. Moving so quickly can sometimes prevent your case from achieving the best results available under bankruptcy laws.
We can help. Call Robert Raley Bankruptcy Attorney today at 318-747-2230 or set up an appointment by visiting our contact page.