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Home Foreclosure

Home foreclosure can be one of the most frightening things to face. The prospect of losing your home can not only leave you without a place to live but also can make all the hard work seem like  a waste of time. Owning your own home is a wonderful experience and putting money towards a mortgage instead of towards rent can mean that, with every pay check and every bank deposit, you are making a little dent on your mortgage. However, if the payments become too much and you begin to fall behind, then the bank can threaten to foreclose your home.

How Foreclosure Works

Foreclosure means that the bank will take possession of your house and sell it, usually for a much cheaper price than you paid and what it is worth. This can leave you feeling ashamed, frustrated, angry and upset. If you are faced with the prospect of foreclosure or if you have already received a foreclosure statement from your lending company, then contact us today. One option you have to prevent foreclosure is to file for bankruptcy. This may be something that not only saves your home, but also saves your sense of pride.

Brea Buettner-Stanchfield is an experienced Minnesota bankruptcy lawyer that can make the difference to your financial future. Managing your debt is not an easy task and often a change of circumstances can lead to debt that simply gets out of control. When you need to feed your family, pay the bills and make the monthly mortgage payments, sometimes it’s not possible and something’s gotta give. We can help you understand your options and, if bankruptcy is the right path to take, help you every step of the way. Contact us today at 612-377-5311 for a free initial consultation.

Chapter 7 or Chapter 13 Bankruptcy

As soon as you file for bankruptcy, the lenders will receive the notice and your home will be placed on “automatic stay” which means the threat of foreclosure will stop. There are two different bankruptcy options you may want to consider when faced with foreclosure. Liquidation bankruptcy may mean that you need to sell your home in exchange for your debts. While you may not be able to keep the house, you will also be able to get rid of other debts as well, not just your mortgage. This can include utility bills, medical bills, furniture credit and much more. Reorganization bankruptcy may allow you to keep your home by placing you on a payment plan where all of your debts, including your mortgage are consolidated into one simple payment.

If your home mortgage is being foreclosed because you’re behind on payments, you can stop the foreclosure and get time to catch up by filing for Chapter 13 Bankruptcy protection.  The goal of a Chapter 13 Plan is to give homeowners a chance to keep their homes while you catch up on payments you’ve missed.

Here’s how a Chapter 13 Plan works: we file your Chapter 13 case in bankruptcy court.  This prevents the foreclosure from going forward, even if it has already been scheduled for a sheriff’s foreclosure sale.  You then start making the regularly scheduled future mortgage payments. The lender is legally required to start accepting the payments again. You also need to start paying the court-appointed Chapter 13 trustee a monthly payment to catch up the past due house payments. You normally have about three to five years to catch up.

The lender cannot foreclose, so long as you make the regular monthly mortgage payment along with the monthly trustee payment. Even if you’re not sure you can successfully complete this process because of your income, you can obtain valuable time to remain in your home by filing a Chapter 13 case. You can almost always extend the time you get to stay in your home by filing Chapter 13, even if you don’t make any payments at all on the mortgage after filing the case. Of course, the goal is to successfully complete the plan payments and keep your home. The law requires that we show the court a reasonable plan you can successfully complete

 

Contacting a Minnesota Bankruptcy Lawyer

Taking the leap and filing for bankruptcy can be scary but, in the end, it can release you from a world of stress and financial pressure. You don’t necessarily have to lose your home and you don’t have to succumb to foreclosure. There are options available. Contact our team at the Buettner Law Group, LLC today at 612-377-5311 for a free initial consultation.