Foreclosure is the process of taking possession of a mortgaged property as a result of someone’s failure to keep up mortgage payments. For instance, if a homeowner fails to pay his or her mortgage loan on time, the lender that holds the mortgage on that home can bring a foreclosure action against the homeowner. Essentially, a homeowner, who has failed to pay their mortgage, can lose their home to the bank in a foreclosure action.
How To Stop Foreclosure
Stopping a foreclosure can be as simple as paying the loan in full, but most often that is not possible. As the homeowner most likely doesn’t have the funds to make the monthly payments, let alone the funds to pay the entire mortgage off plus interest. And once the process begins and documents have been filed in court, the solutions to stopping a foreclosure can require assistance from an experienced mortgage attorney.
The Foreclosure Process
Once the lender has delivered a notice of default to the homeowner and the homeowner has failed to respond by paying the full amount of the loan plus interest, the process of foreclosure begins. Generally the lender then files a lawsuit to obtain a court order to foreclose. This can happen to homeowners as early as after only three missed payments. Homeowners will then receive a court Summons and Complaint. There will be court proceedings and deadlines. The foreclosure process can take a year or more before it is settled.
It is important that homeowners who’s homes are being foreclosed upon have assistance throughout the foreclosure process from an attorney who is experienced in dealing with foreclosures. Someone who knows the process and the laws can be invaluable to a homeowner. In some cases they can help to find a way to restructure the homeowner’s debt and possibly allow them to keep their home.
Foreclosure and Chapter 13 Bankruptcy
One of the ways a homeowner may be allowed to keep their home is by filing a Chapter 13 Bankruptcy. An experienced attorney can guide a homeowner through a Chapter 13 bankruptcy and stop the foreclosure action at the state court level. A foreclosure attorney can restructure the homeowner’s debt over a period of three to five years, making it possible for them to keep their home.