Buying a home is often the largest purchase local families will ever make. It remains a seminal part of the “American Dream” to stop paying rent and buy a house. However, as the past few years demonstrated, for a variety of reasons this dream can be shattered by financial troubles. After missing mortgage payments it is common for Hayward residents to find themselves facing foreclosure.
A home foreclosure can be the result of an underwater mortgage, a mortgage acceleration, or a major financial event, such as losing your job or having a medical emergency. These are things that can happen to any homeowner, even despite careful financial planning. If you are being threatened with an imminent home foreclosure, you may think that there is nothing you can do to stop or delay it. However, Hayward residents may want to consider filing for bankruptcy as an option.
Filing for bankruptcy in order to stop a home foreclosure is not the best choice for everyone. Hayward residents with secured debts in excess of $1,149,525 may be ineligible to file for Chapter 13 Bankruptcy. Likewise, if your home is worth far less than you owe on your mortgage, saving the home might not make sense. An experienced bankruptcy attorney in Hayward can help you decide whether filing for bankruptcy is a good option for you.
Bankruptcy has several features that exist to protect people who are struggling with their debt. One of these tools is called the “automatic stay.” Regardless of whether you file for Chapter 7 Bankruptcy or Chapter 13 bankruptcy, the automatic stay takes effect immediately upon filing papers with the bankruptcy court. The purpose of the automatic stay is to protect a debtor from creditor actions while the bankruptcy is underway. Once the automatic stay is in effect, creditors – including a mortgage company – are prohibited from:
For Hayward residents who have income but are behind on mortgage payments, filing for Chapter 13 Bankruptcy may be able to entirely stave off a home foreclosure. In Chapter 13 Bankruptcy, a debtor makes monthly payments for a period of either three years or five years. At the end of Chapter 13 Bankruptcy, a debtor’s remaining unsecured debts are forgiven. Although a first mortgage is generally a secured debt, Chapter 13 Bankruptcy can give a debtor time to catch up on their mortgage payments, although they must be sure to continue to make their regular monthly payments in addition to any arrearages.
If you are behind on your mortgage payments, the Law Offices of Melanie Tavare may be able to help stop or delay a home foreclosure. Contact us online or call us at 510-255-4646. It is important that you consult as soon as possible with a bankruptcy attorney who has the experience necessary to advise you about whether filing for bankruptcy is your best option.
The Law Offices of Melanie Tavare is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code