Losing your home because of a bankruptcy-related foreclosure is one of the worst things that can happen to you, but it does not have to be that way. One way you can avoid it is to hire a bankruptcy attorney to help you go through the process. A San Francisco Bay area foreclosure attorney who can help you go through all the steps to help you keep your house is the law office of Steven C. Finley.
Step 1: Obtain a Modification on Your Home Loan
Dual tracking, the process of foreclosing a loan while the application to modify your loan is still in process, was made illegal in 2014. This makes it easier for a loan modification to reduce the interest rate and to make sure your monthly mortgage payments do not exceed a third of your income.
Step 2: Know Your Rights and Go To Court to Assert Them
You can put a stop to a nonjudicial foreclosure by taking your lender to court. As a California homeowner, you have a bill of rights, and if you can prove any violations of those rights, then you may have a case. A San Francisco Bay Area real estate attorney can guide you through the process and to prove whether the lender can be held liable for its actions.
Step 3: Apply For Chapter 13 Bankruptcy Instead of Chapter 7
If all else fails and you still cannot pay your debts without filing for bankruptcy, do it under Chapter 13. This process restructures your debts over three to five years. This gives you time to make enough payments to keep your house, as it also covers unpaid mortgage payments.
Do not allow bankruptcy and foreclosure to cost you your house when you have put so much time, money, and effort into keeping it. Follow these three simple steps from San Fransisco Bay bankruptcy attorney Steven C. Finley, and you can avoid making any more costly mistakes that might end up putting you and your loved ones out on the street.