If you are behind on your mortgage payments, you may be facing a foreclosure action very soon. Some mortgage companies move more quickly toward foreclosure than other companies. Never assume that you have four, six, or eight months of past due mortgage payments before a lender files a foreclosure complaint. A mortgage lender could begin foreclosure proceeds after the first missed payment if it was inclined to do so.
At Allegiant Law, our Buckeye foreclosure attorneys can help you review your options regarding the foreclosure of your home. The sooner you begin exploring your options, the more flexibility you have regarding how to handle a mortgage foreclosure in Buckeye.
How Are Mortgages Foreclosed in Buckeye?
Most mortgage foreclosures begin with the filing of a foreclosure complaint with the court. As we stated above, a lender may begin foreclosure proceedings after the first missed payment. Most lenders attempt to collect the past due payments or work out an agreement with the borrower before they start a foreclosure. Other lenders might give a homeowner one chance to bring the loan current before it sends the file to a foreclosure lawyer.
You are served with the foreclosure complaint and given a deadline to file an answer or response to the complaint. If you believe that the foreclosure is in error or you have a valid defense, contact our Buckeye foreclosure lawyers immediately. You need to respond to the complaint before the deadline expires or you are in default.
If you fail to respond to a foreclosure complaint, the mortgage lender requests a default hearing. The judge reviews the evidence presented by the mortgage company and issues a default judgment scheduling a foreclosure sale date. Once your home is sold at a foreclosure sale, it is too late to save it.
However, if you file a Chapter 13 bankruptcy case before the foreclosure sale, the bankruptcy filing stops the foreclosure sale to give you time to propose a plan to save your home from foreclosure.
The Chapter 13 Bankruptcy Plan
Your bankruptcy repayment plan includes the mortgage arrearage (past due payments, fees, and costs) required to bring the mortgage loan current. The amount of the arrearage can be divided into 60 payments if necessary.
You must resume regular monthly payments to your mortgage company outside of the Chapter 13 plan. If you miss any future payments, the mortgage company can file a motion with the court seeking relief from the automatic stay. If the court grants the relief, the mortgage lender may resume collection efforts, including a foreclosure action.
Your Chapter 13 plan also includes amounts for other creditors, including your car loan, tax debts, and general unsecured creditors. Each month, you pay the plan payment to the Chapter 13 trustee, and the trustee disburses the payment to your creditors.
When you complete your Chapter 13 plan, any amounts owed to general unsecured creditors are discharged or forgiven, except for most student loan debts. Creditors whose debts are discharged in your Chapter 13 case cannot attempt to collect the debt after your bankruptcy case is closed.
Non-Bankruptcy Alternatives to Stop Foreclosures
You may be able to modify your mortgage loan to add the past due payments to the end of the loan. Your lender may agree to a refinance of the loan, or you may qualify for a refinance with another lender, depending on your credit.
Some debtors borrow money to catch up their loan payments to avoid foreclosure, but this option only adds to the debt problem. Before doing anything, you may want to consult with our Buckeye foreclosure lawyers to learn about all your options and which option might give you the best results for saving your home and resolving your debt problem.
Contact Our Buckeye Foreclosure Attorneys for More Information
Foreclosure actions can be complicated and stressful. Let our Buckeye foreclosure attorneys review your situation and offer suggestions about how to keep your home while protecting your other property, income, and resources.