Preventing Home Foreclosure or Minimizing Your Losses
For most of our clients, staying in their home is a high priority but they have missed or been late on one or more mortgage payments and now fear foreclosure.
You may very well have options. Both Chapter 7 and Chapter 13 bankruptcy will temporarily stop a foreclosure if filed prior to the sale date of your home. Talk to a bankruptcy lawyer at Marrs & Terry, PLLC if you are having trouble making your mortgage payment or if you believe you are going to receive a foreclosure sale notice.
Contact our law office to schedule a free consultation. We have six Michigan offices for your convenience: Ann Arbor, Ypsilanti and Jackson.
Keeping Your Home
- If you file for Chapter 7 bankruptcy: Your mortgage is a secured debt and cannot be discharged. If your bankruptcy relieves you of substantial medical or credit card debt, you may find that you can now afford to resume your mortgage payments and pay any missed payments. If you wish to keep your home, you can reaffirm your mortgage.
- If you file for Chapter 13 bankruptcy: The terms of a first mortgage cannot be modified but if you have a second mortgage, those terms may be modifiable or your second mortgage may be stripped. If your mortgage payments are in arrears when you file Chapter 13 bankruptcy, you will be able to repay those late payments over the course of three to five years.
Retaining Equity If Your Home Is Sold
The amount of equity you have in your home is a key component of your assets. When possible, it is best to sell your home in order to cash out the equity. In today's real estate market, however, it is often not possible to sell a home for the price that was paid only a few years ago.
Many people who come to our office are interested in a short sale. Before you try to do a short sale, however, be sure to talk with a lawyer about the consequences of the sale. You may be left still owing money to the bank and there could be costly tax consequences next year.
Stay in your home as long as possible. Keep your house if at all possible. Get debt relief in the event that your home is ultimately sold. Take action to change your financial future. Contact Marrs & Terry online or call us toll-free at 866-665-8095.
Have you been told you don't qualify for bankruptcy? Talk with one of our experienced bankruptcy lawyers for a second opinion.