Understanding Foreclosure In Chapter 13 Bankruptcy
Banks and lenders went to great lengths in recent years to help individuals and families fulfill their dream of home ownership in Orange County, Los Angeles, San Bernardino County and throughout Southern California. Unfortunately, many people were sold homes they couldn’t afford or lured in by adjustable rate mortgages, while others found themselves hit hard by the economic downturn and unable to keep up their mortgage payments.
Fishback Law Corporation helps clients throughout Southern California find a way to solve their mortgage problems and save their home from foreclosure through one very powerful tool. Our attorney will take time to address your concerns and answer your questions so understand how your decisions will affect your life. You don’t need to feel alone when filing bankruptcy. Fishback Law Corporation can help you today.
Chapter 13 Saves Your Home From Foreclosure
Perhaps the most important reason to file Chapter 13 rather than Chapter 7 is if you are facing a home foreclosure because you cannot afford your monthly mortgage payments. Chapter 7 will also stop a foreclosure sale but only for a limited time. Chapter 13, on the other hand, takes those payments you have missed and rolls them into the payment plan you are developing, allowing you to catch up on back payments comfortably over a three to five-year period. Doing this brings you current on your mortgage and out of default. As long as you stay current going forward, you no longer face the threat of foreclosure. And with a plan that allows you to meet your financial obligations within your current means and disposable income, there is no reason you cannot continue to stay current on your mortgage.
A foreclosure is more than just losing your home, which itself is a major upheaval in the lives of most people. A foreclosure also places a black mark on your credit report for many years. Even worse, if the sale of your home by the bank doesn’t pay off all that you owe on the mortgage, you may find yourself without a home and still liable to the bank for the deficiency!
Experienced Orange County Chapter 13 Attorneys
Please contact our office if you are facing foreclosure to discuss your options. We may be able to help by stripping away a second mortgage, or reducing a first mortgage principal balance to reflect the home’s current market value through a process called “cram down” or bifurcation. Even if you are not filing Chapter 13, you may have several viable defenses to a wrongful foreclosure or other options to avoid having a foreclosure on your credit report. For Chapter 13 bankruptcy in Orange County, Los Angeles County, San Bernardino County, San Fernando Valley and throughout Southern California, as well as other alternatives to saving your home from foreclosure, contact us online or call our office in Irvine at 949-274-7080 for a free consultation.