Losing your home is a terrifying thought, and with mortgage debt increasing exponentially, it seems almost unavoidable when the notices start arriving. But there are ways to buy yourself some time to make ends meet, unless you’re planning to give up without a fight…
Foreclosure is not a suddenly initiated process. Lenders won’t typically start considering foreclosure if you miss one mortgage payment, but if you continuously shirk your duty of paying mortgage payments (about 3 missed payments), the lender will most probably notify you that you are subject to foreclosure and make arrangements to sell your house on auction. You will have enough time to take steps to avoid this fate…
If you already have an overwhelming amount of debt and you know there is no way to pay your mortgage payments, you might want to consider consulting a Houston bankruptcy lawyer to consider bankruptcy as a viable option to stay off the streets. You can attempt other methods, like possible loan forbearance, but a low success rate might leave bankruptcy as your only option.
Filing for Chapter 7 bankruptcy will give you a few months’ peace and stall foreclosure, which will give you time to secure a new residence that you can afford. If you file for Chapter 13 bankruptcy, you will have a new opportunity to save your home from foreclosure and pay off your debt, where your debt will be less intimidating to pay. Whichever option you choose, both stand with testimonies for saving foreclosure-threatened homes.
Houston is an extremely large city in Harris County, and there are more than 250 law firms to cater to your legal needs. Whichever region you live in, there will be a lawyer in your district to consult for possible bankruptcy. If you live in Lynchburg, you will be able to find a qualified Lynchburg bankruptcy lawyer to handle your case close to home. With expensive transportation costs, this is a sure blessing.
After filing for bankruptcy with the help of your local Houston bankruptcy lawyer, the court issues the so-called “order for relief,” which includes the “automatic stay.” The automatic stay orders all of your creditors to cease their collections, which will also postpone your home’s foreclosure sale by about 3 month or more. The creditor might still receive the court’s permission to continue with the sale, but you will still receive about 2 months to resolve the issue.
Chapter 13 bankruptcies will give you the chance to try and save your home from foreclosure by letting you pay your missed mortgage payments over a payment plan period you can propose yourself. You will still have to pay your current mortgage costs, but if you can make a plan in the time it takes to settle your bankruptcy case, you will be able to avoid foreclosure successfully.
Foreclosure might throw you into an intense state of panic and lead to resignation. But as negative as it may seem, bankruptcy could actually be the solution to your dilemma.
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Call us today at (713) 974-1151 to schedule a no-obligation consultation or feel free to email us at Consumerlaw@busby-lee.com.