July 17, 2015

One of the most frightening things that can happen is for someone to face the prospect of losing their home.  As bills fall behind, homeowners may face foreclosure actions.  When a bank forecloses on your home, it may seem impossible to find a way to prevent them from selling your property and evicting you and your family.  This may not be the case.

A Chapter 13 bankruptcy can stop a foreclosure sale, and can give you time to correct your deficient payments.  By paying the mortgage and the arrears through your Chapter 13 Plan, you prevent the lender from proceeding with a sale, you keep your home and belongings, and resolving some of the issues which have caused you significant stress, and damaged your credit.

Another benefit of a Chapter 13 bankruptcy is the potential to strip a junior lien from your property, normally from a second mortgage.  If your home has a fair market value lower than the amount owed on the first mortgage, there is no equity on which the second mortgage can secure their loan interest, and the court can strip their lien and reduce their interest from that of a secured creditor to one of an unsecured creditor.  This can seriously impact your financial position moving forward.

If you are behind on your mortgage, we may have solutions to help you get caught up.  If you are facing a foreclosure, we have ways to help you and your family save your home.  Please call one of our experienced attorneys to discuss your options.

Michael  A. Spencer
Associate Attorney



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