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Home Foreclosure Laws and You

Going through the home foreclosure process can be a frightening and unsettling experience. Fortunately, there are numerous laws that aim to make the process as smooth as possible.

In addition, just because a foreclosure is in the works, you shouldn’t be distraught. In fact, if you explore your bankruptcy options, you may be able to keep your home.

If you’d like to explore avoiding foreclosure through personal bankruptcy, fill out the form below for a free consultation with a local bankruptcy attorney.

What is Foreclosure?

Put simply, a foreclosure occurs when your bank, or whatever entity loaned you the money for your home mortgage, takes your property back into its ownership.

Foreclosures usually occur when a home owner has fallen behind on his or her payments. According to the Mortgage Bankers Association, 1 out of every 200 homes will be foreclosed on each year.

In addition, nearly a million American families will enter home foreclosure proceedings each year. These statistics show that foreclosure is a very common occurrence.

Foreclosure laws tend to vary widely across the country, but most states have extensive foreclosure regulations that govern the process. A local attorney may be able to help inform you of your own state’s unique foreclosure laws.

Can I Refinance My Mortgage?

Refinancing a home loan can be done, but it’s not always the best way to avoid foreclosure. Nevertheless, here is some information on home loan refinancing:

• Many homeowners don’t work out a new loan because they are in the midst of financial difficulties that prevent payments, so a new loan doesn’t exactly help.
• If you have a lot of equity in your home, and your payments are less than 90 days overdue, you may be able to refinance your loan.
• Unfortunately, if your payments are more than 90 days overdue, or you don’t have much equity in the home, refinancing is probably not a viable option.

Can Bankruptcy Stop Foreclosure?

Many people file for Chapter 13 in order to stave off foreclosure. Usually, when an individual files for either chapter of bankruptcy, the automatic stay on their debts is granted.

This automatic stay puts a temporary halt on the foreclosure process and all other forms of collection. This gives the bankruptcy filer protection while working out a solution for debt. The automatic stay may stop foreclosure even if the bank has already started to take action against you.

Filing for bankruptcy may help you get your financial feet underneath you, allowing you to get out from under your mortgage and get on with your life.

To learn more about the foreclosure laws unique to your state and how bankruptcy may help you prevent a foreclosure, contact a local attorney today.