Facing Foreclosure? Here Are Some Helpful Tips.
Foreclosure can be one of the hardest problems a homeowner can face. If you’re close to facing foreclosure, it most likely means you’re in serious financial difficulty. Understanding the process–and knowing to whom you should turn in this crisis–could make all the difference in emerging without losing everything.
Tip One: Talk to the bank
The FTC (Federal Trade Commission) recommends keeping the lines of communication open with your lender when you fall behind on your mortgage payments. Your lender will have some standard questions such as why you fell behind on your payments and whether your problem is long or short term. Keep notes from the conversation, follow up on all requests your lender makes and meet any deadlines your lender gives you. The more you talk to your lender, the more time you may have to save your home or delay the process offoreclosure.
Tip Two: Bankruptcy is a choice
Once you start getting a few months behind on your mortgage payments, your bank may begin the foreclosure process. Once the foreclosure process has started, you have a decision to make, which may involve either filing for bankruptcy or having the bank foreclose on your home. Bankruptcy can bring foreclosure proceedings to a halt, end harassment from debt collectors, and give you time to make up missed payments and reorganize your finances.
Tip Three: If you file, when to file bankruptcy
Once the foreclosure process begins, there isn’t much you can do to stop it, aside from paying the loan off or filing for bankruptcy protection. You can stop foreclosure when you file bankruptcy because it comes with an automatic stay which protects your home. Once you file for bankruptcy, your creditors cannot continue to pursue actions against you to reclaim your debt until your case is resolved. You must file before your home is sold in a foreclosure auction or the bankruptcy will not make a difference.
Tip Four: Hire an attorney
It is strongly recommended that you hire an attorney if you are facing either bankruptcy or foreclosure. The
United States bankruptcy code is
extensive and there are attorneys who specialize in understanding the code.
Likewise, foreclosure is a complicated and strict process in which rules must
be followed by your lender. An attorney that focuses on bankruptcy knows these
rules and can protect your rights during the process.
King and King Bankruptcy attorneys in
Atlanta are experts in helping people who are
facing foreclosure. Call us today at
404-524-6400 for a free consultation.