When It Comes To Protecting Your Home, Time Is Of The Essence
When financial problems reach the point that you can’t make your mortgage payment, the unthinkable enters your mind: foreclosure. With it comes gut-wrenching images: a sheriff standing at your door with a foreclosure summons; an impassive judge signing a foreclosure judgment; a hurried auctioneer selling your home to the highest bidder; your lifetime possessions and memories piled on the street after eviction.
When a foreclosure begins, too many people take the “ostrich approach” and bury their heads in the sand, avoiding the unpleasant thoughts and praying for a miracle. They skip court dates, ignore phone calls and leave mail unopened. Needless to say, this is a recipe for disaster. If you have been served with foreclosure papers, you need to act immediately to preserve your rights.
Attorney Brian G. Hiatt has helped many people in Bourbonnais, Illinois, and the surrounding areas who are struggling with debt to protect their homes from foreclosure. Some want to save their home at all costs. Others acknowledge they can’t afford to keep the house, but want to maximize the time they can get before moving. Still others want to avoid bankruptcy by entering into a loan modification, short sale or deed in lieu of foreclosure. Whatever your preferences, he can help you determine the best course of action.
How Bankruptcy Can Help Prevent Foreclosure
Filing for bankruptcy relief will trigger an automatic stay, which halts any foreclosure proceedings against you. What to do after filing depends on your wishes and your situation. If you want to keep your home and repay your mortgage delinquency, you can do so through a Chapter 13 repayment plan. If you want to surrender the home, you can do so in either a Chapter 7 or Chapter 13.
Other Options Besides Foreclosure
Loan modification often allows you to lower your payments for a period of time, lower your interest rate or restructure your mortgage to cure your arrearage. In some cases, loan modification also may be available even if you receive a Chapter 7 discharge.
If you do not want to modify your mortgage and simply want to give up your property, you can pursue a short sale or deed in lieu of foreclosure:
- A short sale is a sale of the property for less than the balance owed on the mortgage. The bank must consent to a short sale, and also agree to forgive the difference left after the sale.
- A deed in lieu of foreclosure allows you to transfer the property back to the bank. In exchange for accepting the deed, the bank releases you from any personal liability on the mortgage, even if it is unable to recover the balance owed from a sale.
Consult An Experienced Bankruptcy Lawyer To Discuss Your Options
Do not bury your head in the sand. Act now and contact the law firm of Brian G. Hiatt Attorney at Law to learn about your options for foreclosure defense. Call 815-304-5441 or contact the firm by email.
Brian G. Hiatt’s law firm is a debt relief agency. It helps people file for bankruptcy relief under the Bankruptcy Code.