Putting Off Bankruptcy Can Be a Costly Mistake
At The Law Offices of John E. Mufson in Delray Beach, Florida, we assist homeowners who have been served with a foreclosure notice on their property. We offer a free initial consultation to discuss your mortgage debt problems and explore possible solutions.
If your creditor has started the foreclosure process, Delray Beach bankruptcy lawyer John Mufson may still help you keep your home. Timely legal assistance could stop your foreclosure. If your home is in foreclosure, we will also help you understand your rights as a creditor. We will help you understand the entire process and assist you with a plan that works for your individual needs.
Simply filing an answer to the foreclosure notice will significantly increase the time in which you can remain in the property. In some cases, it may be in your best interest to have legal representation throughout the foreclosure process.
Don’t Rely on Loan Modifications
Even if you are negotiating with your mortgage company in order to modify your mortgage, the mortgage company can still continue with the foreclosure process. Do not be lulled into a false sense of security by this option. Often the modification will be rejected by the lender, and you must be ready to take the appropriate steps to protect your interests.
Is your mortgage defective? If your lender made mistakes in your mortgage, you may have grounds to have the mortgage rescinded. If a judge agrees, you would own your home outright. A legal action to rescind your mortgage can also be used as a tool for leverage to give you a loan modification.
Bankruptcy Options
Filing for Chapter 7 or Chapter 13 bankruptcy will temporarily prevent a lender from pursuing foreclosure on your property. Bankruptcy can be used either to delay a foreclosure or to give you time to get caught up on your payments:
- If you file for Chapter 7 bankruptcy, you can stay in your house for up to a year without making mortgage payments.
- If you file for Chapter 13 bankruptcy, you can place your mortgage arrearage into a repayment plan and pay it off over a three- to five-year period. Chapter 13 can also be used to strip a second mortgage from your home.
