Foreclosure and Loan Restructuring Lawyers Serving Clients Throughout Warren County, Butler County and Beyond
There are two ways to legally stop foreclosure. The first is to catch up on the missed payments and late charges that led to the foreclosure in the first place. Of course, this is often impossible because the missed payments often add up to thousands of dollars in arrearages. It is very difficult to get caught up on a mortgage that's months behind. Many times, the mortgage company will no longer accept your payments once the foreclosure has been filed.
The second way to stop foreclosure is to file a bankruptcy. Filing bankruptcy puts an automatic stay into place that stops all foreclosure actions, as well as other creditor actions against you. A Chapter 13 bankruptcy allows you to pay back the missed mortgage payments over five years, with no ongoing interest or late fees. This makes keeping your home an affordable option if you've fallen behind.
At the law firm of Harold Jarnicki & Associates, our attorneys have more than 35 years of experience that we will use to help you stay in your home.
Ignore the Letters From Foreclosure Rescue Companies
If you have been threatened with foreclosure, you have probably received letters from so-called foreclosure rescue or mortgage relief companies. Ignore these. These companies tend to be misleading and are sometimes fraudulent, which is why Attorney General offices across the country are trying to shut these companies down. These foreclosure relief companies may take your money, temporarily stall the foreclosure, and you still end up losing your home to foreclosure shortly thereafter. On the other hand, filing bankruptcy legally stops the foreclosure action, and gives you the option of keeping your home or surrendering it back to the bank with no debt to be paid back.
Should You Keep Your Home?
Perhaps you have determined that your house payments do not fit within your budget, so you want to get rid of your home. Do not just let the foreclosure happen, and do not just deed the house back to the bank without first speaking with us. If you let the bank foreclose or deed it back to the bank, you are usually still liable for the deficiency, which is the difference between what the bank resold the home for at auction and what you owed on it. You will likely be sued for this deficiency. The bankruptcy will protect you from any deficiency owed on a foreclosed home, as the debt is discharged in the bankruptcy. Filing bankruptcy will also stall the foreclosure and buy you time to stay in your house before the foreclosure, allowing you extra time to find a new place and even sell your house on your own terms.
Of course, you may want to keep your house. By filing bankruptcy, you can stop foreclosure and figure out the best way to make your payments. In Chapter 7, you can eliminate your other debts so you can focus on your overdue house payments. In Chapter 13, you can include your missed payments as part of your debt repayment plan, paying back the arrearage with no ongoing interest or late fees. You have options. We will help you choose the right one.
Contact Us For Your Free Initial Consultation
To discuss your case with one of our Cincinnati and Dayton foreclosure defense attorneys, contact us today.
