Options for Foreclosure Defense
There are several effective way to defend against foreclosure. An experienced bankruptcy attorney can help you decide what option is best for you. Even if you have already received a notice of default from your lender or a complaint initiating foreclosure litigation against you, options to avoid and/or stall the foreclosure remain available. Depending on your individual financial circumstances, you may be able refinance your mortgage, work out a loan modification or payment plan that lets you get current on your mortgage payments or sell your home.
In addition, and most importantly, a sure-fire way to prevent or halt a foreclosure is to file bankruptcy. Filing Chapter 7 or Chapter 13 bankruptcy automatically stops all contact and collection action including a threatened or pending foreclosure by creditors, including your mortgage company. Instead, they have to go through your attorney and the bankruptcy court.
Depending on your circumstances filing a Chapter 7 liquidation bankruptcy that discharges your unsecured debt may free up enough of your income to enable you to catch up on your mortgage payments. Alternatively, filing a Chapter 13 bankruptcy allows you to force a payment plan on your mortgage company to enable you to get current on your mortgage payments. An experienced bankruptcy attorney can advise you regarding this option.