Few things are more rewarding than the day you become a homeowner. Years of hard work results in you finally having a place you can call your own and grow old in.
Unfortunately, life may get in the way, and due to unforeseen economic or personal hardships, you may be unable to make your mortgage payments. When this happens, you are at risk of foreclosure, meaning the bank will take control of your home and you’ll be debating what to do next.
That said, there are ways you can stop a foreclosure sale. They include:
1) Reinstating the Loan
2) Paying the loan in full
3) Negotiate an extension with the lender
4) File for bankruptcy
Notably, there is a provision of the Bankruptcy Code referred to as the “automatic stay.” The automatic stay stops the foreclosure action as soon as your file for bankruptcy. The automatic stay applies in both Chapter 7 and Chapter 13 cases; although in regards to Chapter 7 it’s just a temporary solution, while in Chapter 13 it remains in effect for 3 to 5 years, allowing you to repay your back mortgage payments over time.
Regardless of your situation, the prudent measure to take when facing foreclosure is to speak with an attorney that specializes in that area. As a foreclosure attorney in Buffalo, NY, I have an in-depth knowledge of foreclosure and bankruptcy laws and I will provide you with the guidance and support you need throughout your ordeal.
If your home is in foreclosure contact Buffalo NY bankruptcy attorney Thomas Denny to help you determine whether a Chapter 7 or a Chapter 13 is best for your situation