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Worried about losing your house? Stay in your home with aggressive foreclosure defense from The Murphy & Murphy Legal Group! The prestigious Law Firm of Murphy and Murphy Legal Group has been serving clients on the Treasure Coast in Stuart, Port Saint Lucie, Jensen Beach, Hobe Sound, Palm City and the North Palm Beach communities for over 45 years in Bankruptcy and Foreclosure law
The threat of losing your home can be terrifying. If you are unable to keep up with your mortgage payments, you want to find a way to avoid home foreclosure. It is easy to feel helpless in a situation like this, but the right lawyer can help you save your home using a number of legal options, including Chapter 13 bankruptcy.
Solutions to Foreclosure:
There are various potential solutions ways to resolve an impending foreclosure. The most important point to remember is that time is of the essence in avoiding foreclosure. Specifically, you need take action early in the process before you run out of options.
Pay the Delinquent Amount (also known as Reinstatement)
The most basic solution is to repay the delinquent portion of the loan and get caught up with your lender.
Another option is to attempt to negotiate some form of repayment plan with the lender. Occasionally your lender may agree to defer a few payments that will become due at the tail end of your loan. However, all negotiations are solely at the discretion of the lender. Many people ask whether a lender will reduce the total amount due or permanently reduce the monthly payments. While anything is possible, these are the least likely things that a lender will typically be inclined to do. However, in light of the recent downturn in the economy and falling property values, lenders might be more inclined to discuss a modification of the mortgage.
Another solution is to sell the property. If escrow is closed on the property prior to the foreclosure, then there is no need for a foreclosure in that the loan will be paid in full. If you have equity in the property, you may end up walking away with money in your pocket. If the property is upside down (meaning the property is worth less than what you owe), you still may be able to sell the property by doing a "short sale." This means that the lender voluntarily agrees to accept less than the full amount due. A lender may agree to go along with a short sale as it is usually better for them to have their money now as opposed to going through foreclosure and then reselling the property as this could take many months. If you choose this solution, you should choose a real estate agent who has experience in short sales. Should you choose to explore this option, we are more than happy to refer you to an experienced realtor.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is an option that allows a debtor to discharge certain liabilities, such as credit card debts, personal loans, etc. Although Chapter 7 bankruptcy does not help a debtor reorganize, or otherwise catch up, on his/her mortgage payments, the filing of bankruptcy invokes an "automatic stay," which typically delays the foreclosure process a couple months, sometimes longer. By delaying the foreclosure process, and by discharging other obligations, many homeowners are able to save their homes. Alternatively, if a debtor does not wish to keep his/her home, he/she may still benefit from the extra time that the bankruptcy filing will provide.
Chapter 13 Bankruptcy
Another alternative is to file Chapter 13 bankruptcy. In a Chapter 13 bankruptcy, any delinquent amounts can be repaid over a three or five year period. The lender has no choice but to accept this repayment plan. Of course, any mortgage payments which become due after the filing of the Chapter 13 bankruptcy proceeding must also be paid. If a person has the financial ability, this is as excellent solution in that it requires a lender to take a repayment over period of time.
Chapter 13 Bankruptcy (With 2ND Mortgage Removal):
Depending upon individual circumstances, a debtor in a Chapter 13 bankruptcy may be able to remove his/her second and/or third mortgage loan. Specifically, the debtor must be able to prove that his/her home is worth less than the amount owed against the balance owed on the first mortgage.
Deed in Lieu of Foreclosure
If a homeowner wants to avoid a foreclosure sale, he can simply transfer the property back to the lender by executing a "deed in lieu of foreclosure." This process, often referred to as a "friendly foreclosure," does adversely impact one's credit.
Lastly, you may simply choose to allow the property to go via foreclosure. You will have the opportunity to live in the property, free of charge, up to the time of the foreclosure sale. After the foreclosure sale, you may face eviction proceedings and may be charged a reasonable rate of rent during that period of time. This is the reason that we usually advise clients to vacate the premises as they get closer to the sale date.
Foreclosure is an extremely serious matter. A lender can sell your home in a very short period of time. It is for this reason that some action needs to be taken immediately whenyou eceive a Notice of Foreclosureand a lis pendens is filed on your property. The worst thing that you can do is delay. The longer you wait to take action, the more likely you will have less options or no option at all.
The prestigious Law Firm of Murphy and Murphy Legal Group has been serving clients on the Treasure Coast in Stuart, Port Saint Lucie, Jensen Beach, Hobe Sound, Palm City and the North Palm Beach communities for over 45 years in Bankruptcy and Foreclosure law
CALL THE MURPHY AND MURPHY LAW GROUP TODAY
772 223-8600 772 223-8600
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