Each county and parish in the United States has a state law that governs foreclosures. The procedure is still the same. Each mortgage holder must be notified of the plan to foreclose and has the option to make current payments. The standard notification period is 30 days, and all notices are made public. Mortgage firms used to send out reminders automatically when a homeowner is three months behind on their payments. It’s possible that you’ll have less time today. check out more
Homeowners are terrified when they receive a foreclosure letter. You must either find a place to live or find a way to make past due payments because the future is unknown. If homeowners have funds available, payments are unlikely to fall behind. For many people, the only way to get out of this unfortunate situation is to file for bankruptcy.
Your home will be saved if you file.
In 11 U.S.C. Section 362, the United States Bankruptcy Code provides an important clause that creates an immediate stay of proceedings. A stay is equivalent to a federal injunction that prevents all creditors from collecting debts in all bankruptcy chapters. The injunction also extends to foreclosure sales. Your mortgage company would not be able to foreclose until getting notification that you have lodged a lawsuit. Even though a call offering oral notice is also permissible, written notice of filing issued by certified mail is adequate and indisputable.
The automatic stay is not a long-term restraining order. A mortgage holder must carry payments current in Chapter 7 situations, or the court will consider motions to lift the stay. If you do not make all of your payments, the motion will be granted, and foreclosure will begin. Past due payments are included in a proposed plan in Chapter 13 situations. Payments are considered to be current until included in a plan, and the stay will be maintained.
You must make a proposed proposal payment to the appointed trustee within 30 days of filing a Chapter 13 lawsuit. The stay will be lifted and the case dismissed if this payment is not made.
Before obtaining a notice of repossession, foreclosure, or eviction, it is best to prepare a bankruptcy case. The advantages of filing increase exponentially as you give yourself more time to prepare. With only a few extra months, you can improve the means test result. This test decides whether you are qualified to file Chapter 7 and, if you want Chapter 13, the value of your trustee payment.
You may not need to hire an attorney to file for bankruptcy. The majority of lawyers only give one free initial consultation. Your monthly means exam, on the other hand, is different. You can save $400 per test by doing the means test yourself per month. To do so, you’ll need to use a personalised form to get the best results. The official form is cryptic at best, with no useful information for people who want to file Chapter 7.