Put a Stop to Foreclosure
If a mortgage goes into default, the mortgage lender's remedy is sell the property through the foreclosure process. The goal of the foreclosure is to obtain a court order permitting the lender to sell the property. Normally, the lender will succeed in obtaining the order that permits them to sell the property, unless the borrower is able to pay the lender the amount due.
Many individuals in this situation use Chapter 13 to prevent the lender from selling their house. Once the Chapter 13 Bankruptcy petition is filed with the Bankruptcy Court, the lender is required to immediately stop the foreclosure case, even if they are about the sell the property.
The debtor is then permitted to propose the repayment of the default amount through their Chapter 13 plan while being shielded from the lender's foreclosure action.
If you have questions about foreclosure protections, call our office today for a free consultation.