Boca Raton Foreclosure Defense Lawyer
For many of us, our home mortgage is the biggest debt we will ever take on. And once you start falling behind on your payments, the threat of foreclosure looms large. Some people think they can just ignore the problem and hope it goes away. After all, foreclosure is a lengthy process–one the bank is often not eager to start–so maybe you can miss a payment or two without consequence.
This is dangerous thinking. Although foreclosure is never ideal for anyone involved, lenders are not in the habit of allowing debtors to become delinquent. If you are behind in your payments–or your lender has already threatened or initiated foreclosure proceedings–you need to take immediate action. You can start by contacting a qualified Boca Raton foreclosure defense lawyer.
At Nowack & Olson, we can deal with your mortgage lender on your behalf and help keep you in your home. And if it becomes necessary, we will assist you in seeking bankruptcy protection. Although bankruptcy should always be viewed as a last resort, it nevertheless may be your best option for regaining control of your mortgage debt.
How Does Bankruptcy Affect Foreclosure Proceedings?
Up until the bank actually sells your house at auction, a foreclosure action is not final. There are always options. And while filing for bankruptcy will not always save your home, it can buy you time to figure out your next move.
This is because once you file for any type of bankruptcy, an “automatic stay” takes effect. This is a judicial order directing all of your creditors–including your mortgage lender–to immediately cease all collection and foreclosure activities. By law, your lender cannot take your home while the automatic stay remains in effect.
That said, bankruptcy will not erase the bank’s right to take your house. Even in a Chapter 7 liquidation, the court can only discharge your obligation to repay the mortgage. As long as the loan remains secured, a lender may resume foreclosure once the bankruptcy ends.
That said, a Chapter 7 bankruptcy can eliminate most or all of your unsecured debts, such as credit cards and medical bills, which may leave you with enough money to get current on your mortgage. Alternatively, you can file for Chapter 13 bankruptcy, which allows you to restructure your debt into a more manageable repayment plan. Among the advantages of Chapter 13 is that you may be able to get out of an “underwater” mortgage by reducing the amount you owe to the actual market value of your home.
Contact Nowack & Olson in Boca Raton Today
Again, bankruptcy will not magically stop foreclosure. But it gives you options when dealing with your lender. Ultimately, every debtor’s situation is unique. That is why at Nowack & Olson, we carefully review your complete financial situation and offer you custom-tailored advice designed to address your particular debt situation.
Call us or contact us online to schedule a free consultation with one of our experienced Boca Raton foreclosure defense lawyers today.