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.
