Being unable to pay your bills and facing harassment from creditors is bad enough; the threat of losing your home because of defaulting on the mortgage is absolutely heartbreaking. Luckily, if you are facing foreclosure, there are things that you can do to improve the chances of being able to keep your home. Skilled foreclosure and bankruptcy lawyer David McLoon can answer your questions about the foreclosure process and provide you with the guidance you need. Call today to learn more about how to stop a home foreclosure–
Apply for a Loan Modification
One of the best methods for stopping a home foreclosure is to apply for a loan modification. This should be done before a notice of foreclosure has been issued. A mortgage loan modification refers to a change made to the original loan, such as making monthly mortgage payments smaller by extending the length of the loan.
Loan modifications are often the most favorable option for both homeowners and lenders; initiating a foreclosure proceeding can be expensive and time-consuming for a lender.
File for Bankruptcy
Filing for bankruptcy should only be something you do if you have exhausted all other options for debt relief. That being said, if you do file for bankruptcy, the automatic stay will go into effect immediately. Per the automatic stay, creditors–including the lender for your mortgage–must cease any collection efforts for the time being, which means that foreclosure proceedings will be paused. Note that this does not necessarily mean that you will ultimately be able to keep your home. It does mean, however, that you’ll have time to explore other options, including keeping your home by filing for a Chapter 13 bankruptcy.
Challenge the Foreclosure
Depending on the details of your case, you may be able to challenge the grounds for the foreclosure. When you are sent the notice of foreclosure in the mail, you can assert a valid defense. Examples of defenses to foreclosure that may be valid include that the bank can’t prove that it owns the promissory note, the bank made a filing error and you have indeed been paying your mortgage, the bank failed to act in compliance with state law in issuing the foreclosure, or that the bank lacks standing for another reason.
Working with an Experienced Lawyer Is Critical
If the bank is threatening foreclosure or if you have fallen behind on your mortgage payments and you are worried that foreclosure is imminent, working with an attorney who is well-versed in our state’s foreclosure and bankruptcy laws is strongly recommended. An attorney can advise you of your options and represent you throughout the entire process.
Massachusetts bankruptcy lawyer David McLoon has experienced helping clients at risk of losing their home take meaningful action to stop foreclosure. To learn more about the process and how David McLoon can help you, reach out for a consultation by phone, online, or in person at your convenience.