Foreclosure Options

• When you are at least 3 months behind on your mortgage your lender may begin foreclosure proceedings. The foreclosure will be completed unless a bankruptcy is filed or you are able to pay all of your past due payments.

• While you can file for bankruptcy at any time up until the sale of home, it is best not to wait until the last minute since unexpected problems might delay a filing. Your choice of either Chapter 7 or Chapter 13 bankruptcy is crucial in the context of a foreclosure.

• If you elect a Chapter 7 bankruptcy and are in arrears, the lender will ask the court’s permission to proceed with its foreclosure and this request will likely be granted. This is not to say that a Chapter 7 is never the right choice when you are threatened with foreclosure.

• If you elect a Chapter 13, you will usually be permitted to repay your arrears over a period of three years, as long as you comply with the rest of your Chapter 13 repayment plan and continue to pay your current mortgage payment.

• If you decide that selling your home is the best option, you may be able to delay a foreclosure while a sale of your property is completed.

For additional legal advice on foreclosures, contact us today!