For many families, foreclosure has been an all too real loss. Many others may soon face the unpleasant experience of falling behind on their mortgage payment and risking repossession by the bank. While filing for bankruptcy can help you keep your home, there are some things you should know about how the process works.
First, it is important to know which type of foreclosure process is prominent in your state. In a judicial foreclosure state, the lender must follow a protocol for entering a home into foreclosure. Generally, the lender is required to notify you of your missed payment and make efforts to reach you for resolution regarding your delinquent payments before they can file a motion with the court to initiate a foreclosure proceeding. In judicial foreclosure states, the entire process can take several months to complete. On the other hand, a non-judicial foreclosure state does not require the intervention of the court and the lender can expedite the process in as little as 30 days. In such cases, the foreclosure process can be extremely quick, leaving you with very little time for resolution.
When looking to resolve a foreclosure it is important that you consult an attorney right away. You have two options for defending against a foreclosure in bankruptcy. In a Chapter 7 bankruptcy, you can eliminate your unsecured debts like credit cards and medical bills, which can free up your income to make up your missed mortgage payments. In a Chapter 13 case, you may be able to eliminate your past due payment penalties, remove liens or second mortgage payments and resume payments as usual.
Due to the sensitive nature of the foreclosure process, it is important that you should contact a Dallas bankruptcy lawyer to review your options for preventing or halting a foreclosure.