The foreclosure process can be overwhelming and frightening. Many people do not understand the process and the legalese used by attorneys representing mortgage companies. Our Peoria foreclosure attorneys represent homeowners. We can help you with the foreclosure process and might be able to help you save your home if that is what you desire.
How Does the Foreclosure Process Work in Peoria?
The foreclosure process begins with the filing of a foreclosure complaint with the court. However, before this occurs, the homeowner generally receives numerous calls, letters, and notices from the mortgage lender and its lawyer.
However, once the foreclosure complaint is filed, you are bound by deadlines and court rules. You have very little time to respond to a foreclosure complaint. If you believe you paid your payments or that the mortgage company has committed fraud or wrongdoing, you can respond to the complaint to request a hearing. Some individuals respond to the complaint just to lengthen the process so they can remain in the home as long as possible.
If you do not respond to the foreclosure company, a hearing is scheduled. You receive notice of the hearing, but you are not required to attend. The mortgage company presents evidence of the debt and that you are in default for failing to make the required mortgage payments. If the judge agrees that you are in default, the judge issues a default order and schedules the home to be sold at a foreclosure sale.
If you respond to the foreclosure complaint, a hearing is scheduled so that you can present your evidence to the court as to why the mortgage company should not be allowed to foreclose on the home. The judge listens to both sides and issues a ruling.
It is usually a wise decision to hire a Peoria foreclosure attorney as soon as you receive the foreclosure complaint to handle the case. The rules of court and foreclosure law can be complicated.
After the judge issues a judgment of sale, the home is scheduled to be sold at the next available foreclosure date. Unless you can obtain a loan to purchase the property at the foreclosure sale, there is only one way to stop the foreclosure sale and get your home back — file a Chapter 13 bankruptcy case.
Filing Chapter 13 to Stop Foreclosure
Filing a bankruptcy case stops the foreclosure sale immediately, provided that the bankruptcy petition is filed before the foreclosure sale date. It is usually better to file for Chapter 13 bankruptcy relief before the foreclosure hearing, but emergency filings are possible when necessary to stop a foreclosure sale.
You must be able to afford the Chapter 13 plan payment and your regular monthly mortgage payments to keep your home. That is why it is better to work on the Chapter 13 case in advance so that you are sure you want to go through with the Chapter 13 process to save your home from foreclosure.
Your mortgage arrearage (past due amount owed to the mortgage company) is included in your Chapter 13 plan. Instead of paying a lump sum to the mortgage company, you pay a set amount each month through your Chapter 13 repayment plan to catch up on the mortgage arrearage.
Your Chapter 13 plan also includes payments for unsecured debts and other debts, such as car loans and tax debts. In many cases, Chapter 13 debtors pay a small percentage of their unsecured debts. The remaining balances are discharged upon completion of the plan.
Contact Our Peoria Foreclosure Attorneys To Discuss a Foreclosure Matter
If you are behind on your mortgage payments, do not wait for a foreclosure company. Call Allegiant Law Group now at 602-562-1000 to schedule a free consultation with a Peoria foreclosure lawyer. You may have more options to resolve the foreclosure if you address the matter earlier rather than later.