Foreclosure and Bankruptcy

The current financial market has seen foreclosures on the rise continually for months. Whether you are suffering from increased interest rates, falling home value, or a sudden loss of employment, the reality of foreclosure is a stressful one for all those involved. Fortunately, there are many options available, both to deal with a pending foreclosure, and to stop a potential foreclosure before it can proceed. A Chapter 13 bankruptcy is just one of the many ways to avoid the foreclosure process, and give you the chance to remain in your home.

Depending upon the lender, foreclosure proceedings may begin after you’ve only missed a few payments. Your lender will send you a notice at this point, with a demand for full payment on the house within a certain amount of time in order to prevent foreclosure. While you may not be able to pay this amount, you may still be able to work with the lender to come up with suitable payment arrangements to avoid the foreclosure process. Loan modificationsdeed in lieu agreements, and short sales are just some of the ways you can avoid having a foreclosure on your credit report.

If you have a steady income, filing for Chapter 13 may also allow you to prevent foreclosure by allowing you to repay your mortgage arrears over the life of your repayment plan. Regardless of the option you choose, it’s important to move quickly when dealing with a potential foreclosure. While most lenders are willing to work with homeowners in order to avoid having additional foreclosed property on their books, there are some lenders which may need more time to find terms that will allow you to stay in your home with reasonable mortgage payments for your situation.

The length of time it takes for a foreclosure to go through can vary depending upon the lender, so it is in your best interests to file for bankruptcy protection sooner rather than later, if you expect that you will need time to work with your lender, or to find suitable alternative arrangements. Don’t be afraid to seek legal counsel during the process, as having a knowledgeable, objective opinion can be invaluable during the foreclosure process.

About Marc Aaron Goldbach

Marc Aaron Goldbach has worked tirelessly to develop a successful bankruptcy and civil law practice for clients located throughout Los Angeles County. Mr. Goldbach at GoldBach Law Group have represented a wide array of small businesses and individuals with 100% client success rate. Mr. Goldbach is always available to answer questions and willing to guide you through the entire legal process.
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