Have you been served with a notice of foreclosure or foreclosure complaint? If so, do not ignore the documents. The time to save your home may be short. At Allegiant Law, our Anthem foreclosure lawyers can work with you to file a Chapter 13 bankruptcy case to stop the foreclosure so that you can keep your home.
Why Does Filing Chapter 13 Stop Foreclosure Sales?
When you file a bankruptcy case, there are laws that prevent creditors from collecting debts, including pursuing a foreclosure action. The law is called the automatic stay. The automatic stay remains active until the debtor receives a bankruptcy discharge, or the court modifies the automatic stay.
In a foreclosure situation, the automatic stay prevents the mortgage company from selling the home. As long as you file your bankruptcy petition before the foreclosure auction, the Chapter 13 case stops the foreclosure sale.
It is important to note that there are cases in which the automatic stay is not “automatic.” If you have filed bankruptcy previously and the case was dismissed, you need to talk to our Anthem foreclosure attorneys immediately to determine if the automatic stay will be delayed in your case.
Also, the automatic stay can be modified if you fall behind in your mortgage payments during your Chapter 13 case. The mortgage lender can ask the court to modify the stay to allow the lender to collect the debt outside of the bankruptcy system, such as continuing with a foreclosure action.
If you are unable to make your mortgage payments for any reason, call our office. Sometimes, mortgage companies are willing to give a debtor two or three months without mortgage payments if the debtor has good cause for missing the mortgage payments. However, the creditor typically requires an agreement, in the form of an order, that any future default in payments results in an automatic lifting of the stay.
Catching Up Mortgage Arrearage in a Chapter 13 Case
When you file your Chapter 13 plan, the plan payments include the past-due mortgage payments. Because you can spread out the past due balance over 60 months, you can afford to keep your home and catch up on the mortgage payments over time.
Foreclosures in Anthem
If you do not make your mortgage payments, your mortgage company may call you and write letters to you for several months. At some point, the company will retain a foreclosure attorney to file a foreclosure complaint. The attorney typically sends you a letter giving you a deadline to catch up on the mortgage payments in full, or the attorney will file a foreclosure action.
There is no set time for a mortgage company to file a foreclosure complaint. The company could file the complaint as soon as you miss your first mortgage payment. However, the company wants your money, not your home, so most companies wait several months before beginning the foreclosure process.
When a foreclosure complaint is filed, you are served with a copy of the complaint. You have less than a month to file a response. If you do not file a response, you are in default. The mortgage company requests a hearing and asks the judge for a default judgment. The judge orders your home to be sold at the next foreclosure sale.
Contact Our Anthem Foreclosure Attorneys for Help
Do not ignore a foreclosure complaint. Contact our office to discuss your options for keeping your home. By contacting an Anthem foreclosure attorney as soon as possible, you have more flexibility and options regarding your debt problems.
Call Allegiant Law Group at 602-562-1000 to schedule your free consultation with an Anthem foreclosure lawyer.