Few things in life cause more stress than being unable to pay your bills. But if you are overextended or have recently experienced a major unexpected event such as a death in the family or significant medical needs it doesn’t take long before your finances take a hit. One of the biggest hits you can experience is the loss of a job or a reduction in hours, which can cause your paycheck to take a nosedive and put you at risk for certain legal actions. One of the scariest legal proceedings to go through is a foreclosure, where the bank is trying to take away your home. If you have received notice of a foreclosure your first instinct might be to panic because if you are behind on mortgage payments you might feel like there is nothing you can do, but you do have options.
Two options you have after being notified of a foreclosure include:
- Contacting your lender to try and negotiate a workout or loan modification. There are programs in place that many lenders participate in that allow the lender to re-write their own loan. This can save you money on your payment by reducing your interest rate which in turns lowers your payment.
- Offering to give the property back to your lender by signing a deed in lieu of foreclosure or asking if the lender will agree to a short sale.
Another very real option is to file for bankruptcy. There are two types of consumer bankruptcy cases, a Chapter 7 and a Chapter 13. Both forms of bankruptcy have provisions that allow you to save your home from foreclosure and can provide you relief on some of your other debts as well. If you are in danger of losing your home to foreclosure, call us today.
For more information about bankruptcy and foreclosure, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.