Stop Foreclosure and Eliminate Second Mortgages
If you are in debt and at risk of losing your home due to a foreclosure, you do have options. Filing for bankruptcy can stop a foreclosure, but bankruptcy is best used as a last resort. Our foreclosure specialists can help you to go through other means of stopping your foreclosure before it is too late. Eliminating a second mortgage can also be helpful in the process of getting your credit back on track. If you have a second mortgage, then you may be on your way to a foreclosure if you are unable to make those payments.
As a last resort, when you file for bankruptcy because you are afraid that you might lose your home, an automatic stay will be put in place. This means that creditors will not be able to take actions against you or attempt to collect payments while the stay is in place. The bank can still petition to have the stay lifted, however, that process could take months to go through. If nothing else, filing for bankruptcy could buy you a little bit of time before your home is foreclosed. It is important to maintain a good relationship with your mortgage company so that hopefully an agreement can be made before it gets to this point.
A loan modification is a way of stopping foreclosure that focuses on changing or lowering your payment schedule. When your new payment plan is approved through a loan modification, your foreclosure will then be stopped. With this method, you can’t wait until the last minute to take action. The application and approval process will take time to be approved. If you are facing a foreclosure, you need to be proactive in your efforts to stop it.
File a Lawsuit
If the bank that you are working with are not going through the proper means of filing for foreclosure, then you could have a case on your hands. A foreclosure is meant to go through the court system because there are measures and regulations that need to be adhered to. In the case that the bank is unable to prove that they own the note on the home, violated any of the homeowners rights, or didn’t comply with other requirements for foreclosure in your state, or made some other mistake in the foreclosure proceedings and you are able to prove it, then you could have a case.
Eliminating a second mortgage is a great way to free up some of your funds and can help you get out of debt more quickly. Paying off the loan is the best way to improve your credit. If you need assistance or want o explore other options, then call our firm.