What Can Someone Expect In Regards To Foreclosures In 2021?
From what I know, they are starting up again. There’s not much you can do aside from trying to cut a deal with the bank or file a bankruptcy if you have to.
How Much Time Does Someone Have To Answer A Foreclosure Notice?
It depends on where the process is, if they are starting fresh, it can take some time. A foreclosure sale is not something that occurs immediately. The day before the sale date is usually the targeted filing date to stop the foreclosure sale.
Will I Have Any Chance To Save My Home Once A Lender Begins Foreclosure Proceedings?
It all depends on the lender, your cash flow, the arrears, and what you intend to do. When faced with foreclosure, some people decide it’s time to sell the house, which is a viable option. Everything is a matter of time. If the foreclosing lender will give you the time to accomplish that, then anything is possible. It depends on what their intentions are.
Can I Still Save My Home If I Have Stopped Making Payments On My Mortgage?
Absolutely. It’s a matter of if you go into a mortgage modification, which I don’t get involved with, where they consider doing something on your payments, but very often, people don’t get approved for it or you submit the same forms over and over again. When that client comes into Chapter 13, he will have to pay his mortgage arrears, which, let’s say is $22,000, and, at the same time, make his current mortgage payments following the filing. So it is possible. Many Chapter 13s I file are because debtors have run into mortgage arrears, can’t do a mortgage modification, or the bank won’t cut some deal with them. So, they are forced into Chapter 13 and now can pay their mortgage arrears over 60 months.
Is Bankruptcy An Effective Foreclosure Defense?
Absolutely. The filing of bankruptcy through an automatic stay stops a foreclosure in its tracks. The only time it’s not automatic is if you are a serial filer. I once had a client who was a very frequent filer, and this goes back a very long time. The first time I encountered this guy was when I had parked my sailboat across from his 60-foot yacht. That was up in Gloucester in his Marina, but he lost it all, and he was losing his house, and first I filed a Chapter 7 for him and then for his wife. They both took advantage of the automatic stay, delaying it, and then I filed a Chapter 13 for him, which got dismissed. I filed a Chapter 13 for her, which ultimately got denied as well. At that point in time, there was no more filing that I was going to do.
I was done, and eventually, the creditor had somebody standing by in the bankruptcy court for when he would come down to file his case. The court ultimately entered a permanent voiding of the automatic stay, and they eventually moved him out with a Deputy Sherriff.
If you file a Chapter 13, it’s your right to dismiss it. The second time you file a Chapter 13, if you are filing it to stop a foreclosure, the stay is only in effect for 30 days, and you have to request the court to extend the automatic stay within the 30 days. A client came to consult with me. He had an attorney, and the attorney filed for him his 3rd Chapter 13 within the year. We learned that the third time, an automatic stay does not go into effect if you file a Chapter 13, and the attorney should have filed a Chapter 7, which doesn’t have that limitation. But the automatic stay is probably the best unless you can get some forbearance agreement entered into the bank. A forbearance agreement is an agreement with the bank on which you agree to complete terms in a certain amount of time. I’m going to refinance, I’m going to sell, I’m going to catch you up, and in the meantime, I’m going to pay you X number of dollars a month, and please forbear from foreclosing for whatever time.
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