Bankruptcy can stop foreclosure in its tracks.As the holder of the mortgage, you have more rights than you might realize and there are many procedural requirement before a lender can foreclose in California. State and federal law protects homeowners to a great extent. Banks and mortgage lenders are under specific regulations relating to the legal process required.
No matter how late in the foreclosure process your bank has progressed, you can stop the foreclosure sale by filing bankruptcy under Chapter 7 or Chapter 13 of the U.S. Bankruptcy Code. The day you file, an automatic stay of execution is placed against all collections actions, pending the outcome of the court’s ruling in your case. In some cases, you may not even need to file bankruptcy. There are mortgage modification measures available that can help you prevent foreclosure.
Catch up on Arrearages, Eliminate or Reorganize Your Debt — Keep Your House
Under special conditions of the Chapter 7 and Chapter 13 bankruptcy rules, individuals and families filing for bankruptcy may reaffirm their intent to continue paying their monthly mortgage payment, while eliminating or reducing other consumer debt, such as credit cards, in a Chapter 7 or Chapter 13 filing. In most cases, the reduced payments to creditors every month make it possible to meet your monthly mortgage payment. Building equity in your home is still the best way to build a successful financial future.
Contact the Hedtke Law Firm today to schedule a free consultation and discuss your situation. To schedule an appointment, call us today at 760 482-1737.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.