The foreclosure process can be a very lengthy process. Usually, the foreclosure process will begin after you miss a few mortgage payments. The reason for the delinquent payments can vary from an individual losing a job, having a medical procedure, or other family issues. Regardless of the reason, your mortgage company wants to be paid for loaning you the money to buy your home. If you have already looked into selling your home, a short sale, deed in lieu, or any other alternative without success, bankruptcy may be your best option.
Depending on how you want to proceed, there are multiple options available to you. To begin, if you just want to cut ties with your home, chapter 7 bankruptcy is your best option. If you can meet the requirements to file a chapter 7 bankruptcy, filing will allow you to surrender your home and discharge the remaining balance due on the mortgage. Because the foreclosure process can take a long period of time, you will more than likely have a good amount of time to find a new place to live before you have to be out of the home.
If you want to keep your home, a chapter 13 bankruptcy is your best bet. Filing for chapter 13 bankruptcy allows you to set up a payment plan with the court to catch up the mortgage payments that are in arrears. The payment will be structured so that you will make your normal monthly mortgage payment and also pay a percentage of the amount owed each month. At the end of the bankruptcy, your mortgage will be current. This can be difficult to do if your mortgage payment is already high and you have not made a mortgage payment in over a year, for example. We will discuss your options and let you know what we believe will set you up for success.
A notice of a pending foreclosure can be incredibly intimidating. The sooner you let us know that you would like to do something about it, the better. Please feel free to give us a call or send us an e-mail to schedule a free consultation with our bankruptcy lawyer in Columbus. This will allow us to explain the process and give you some piece of mind.