A foreclosure occurs when someone is unable to pay their mortgage or has fallen well behind on their payments for a home or property. The agency or bank that loaned the mortgage out to the person then will attempt to take the home or property back. Following them taking back the property or home, they will proceed to attempt to sell the home at an auction. If they successfully sell the home, then the price the home sold for will go towards the debt owed by the homeowner.
What Options are There?
The options vary if you are going through foreclosure on your home or property. It will also be dependent upon your state and local laws in what is and isn’t allowed. Your lawyer can fill you in more on these details to navigate you through the world of foreclosure. Filing for chapter 7 or chapter 13 bankruptcy may be advised in some instances as this can ease the burden of foreclosure. Chapter 7 is advised for those who desire to try and get the foreclosure process over as soon as possible. This is because the home or property will generally go to auction within a few months if a court deems it so. Chapter 13 is generally a much longer process, but comes with stipulations. Certain balances will need to be paid along with the mortgage itself. As long as the payments are being made though, the person or family can stay in the home.
How to Avoid Foreclosure
If you are worried about having your home or property eventually ending up in foreclosure, then there are some important guidelines to follow. If you believe you can receive more for your property financially than is left on the mortgage, then this could settle things before foreclosure would begin. A judge may also allow a person an extension on trying to pay off their debt or in selling their home. Another option could be just allowing your lender to take the property back without it going to foreclosure. This is referred to as a ‘Deed in Lieu of Foreclosure‘ and in some cases can be performed depending on circumstances.
Legal Counsel Assistance
Going through a foreclosure or bankruptcy can be difficult. This process can be especially difficult for people and families if they are having to leave their homes. That is why it is advised to discuss your options with a skilled and experienced foreclosure lawyer from Offfice of Ronald I. Chorches to assist with your foreclosure. These types of lawyers can assist with the process of foreclosure and may be able to help you stay in your home. They can help out with contacting your lender and finding common ground in getting out of foreclosure.