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You Deserve Financial Relief

Russell G. Small and Kenneth Lenz

3 steps to stop foreclosure

On Behalf of | Jul 20, 2021 | Bankruptcy

If you have received a notice that you have missed mortgage payments and that your home is now going into foreclosure, it’s time to look into strategies to stop the foreclosure and help you keep or sell off that property.

There are several methods you can use to stop foreclosure, but the primary option is to use bankruptcy. When you file for bankruptcy, you stop foreclosure in its tracks. Other options may include a forbearance or loan modification.

  1. Foreclosure relief with bankruptcy

Bankruptcy foreclosure relief, with the Law Office of Russel Gary Small, P.C., starts with determining if you can afford to make your payments or not. If you cannot, and if you don’t foresee a way to renegotiate the loan, then you may want to consider bankruptcy. Chapter 7 bankruptcy, in particular, will stop your foreclosure immediately until you speak with your attorney and the court to work out a plan. Unsecured debts are discharged in bankruptcy, but secured debts, like your home mortgage, may need to be reconfirmed. Remember, during your bankruptcy, you can negotiate with the lender to try to discharge past-due bills or rearrange the debt you owe so that you can get back on track.

  1. Foreclosure and forbearances

If you get a foreclosure notice and have not yet spoken to your lender, consider reaching out to discuss a forbearance. For instance, if you have missed payments due to being in the hospital, the lender may choose to forgive those missed payments and allow you to start paying again in the future.

  1. Loan modification options

If your lender sends you a foreclosure notice and you have the ability to pay some, but not all, of what you owe each month, consider reaching out to discuss a loan modification. A loan modification may help you by reducing your payments but extending the life of the loan, for example.

These are three options that may help you keep your home if you have been given a foreclosure notice. If you’re struggling with debt, talk to your lenders sooner rather than later. Then, you may have more options to choose from to resolve your financial issues.

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