Using Bankruptcy to Save Your Home
Has your house been scheduled for a non-judicial foreclosure sale? Are you getting mixed messages from your bank as you scramble to come up with a way to save your home? Are you wondering what you can do to give yourself options?
Chapter 13 bankruptcy may be right for you. To learn more, contact me, Washington bankruptcy lawyer Thomas F. McGrath, Jr. Based in Bellevue, I serve clients throughout the Seattle area. As an experienced mortgage broker, I have a particularly strong understanding of what can be done to find home financing solutions in bankruptcy.
Stopping Foreclosure So You Can Explore Your Options
In addition to stopping an impending foreclosure sale, there are several ways filing for Chapter 13 bankruptcy may be able to help you avoid foreclosure in the long run, including the following:
- Installment payments: If you are able to make your regular monthly payments going forward, a Chapter 13 repayment plan can spread your arrears out over the course of three years without interest.
- Non-foreclosure sale: If you are prepared to give up your house, bankruptcy can give you time to sell it on the open market. If the property is worth less than you owe, this will need to be a short sale, which I can help you negotiate with your bank.
- Buying time: If you simply need time to pull together the money to pay your mortgage arrears, filing for bankruptcy can give you several months to get your affairs in order.
Each case is different, but with the protection of the bankruptcy court, many of my clients have been able to successfully prevent a foreclosure from moving forward.
Giving You the Leverage You Need in Negotiations
Your bank is not in the real estate business. They want your money, not your house. However, if they do not believe you can afford to pay them, they may be making arrangements to take your house, even as they are promising to work with you.
You may be getting solicitations from non-lawyers offering to negotiate with your bank, for a fee but without any guarantee. Bankruptcy, on the other hand, filed by an eligible applicant puts a stay on the foreclosure sale and can give the filer real leverage in negotiating loan modification if that is the goal.
To talk to an experienced Washington bankruptcy attorney about what you can do to avoid foreclosure, contact me today.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
