Loss of a job, divorce, medical emergencies and predatory lending practices put many at risk of losing their homes. Every year I help rescue dozens of families from the perils of foreclosure. In my experience, I have learned that the first mistake not to make when in danger of losing your home is to rely on the bank. Although it is required by both federal and state law for lenders to make a good-faith effort to provide options to homeowners facing foreclosure, the truth is most banks and mortgage companies have neither the resources nor the incentive to help you. Despite what they may promise, banks rarely resolve or refinance loans for borrowers who are already in default on their mortgages.
Fortunately, the law provides a way to stop foreclosure. It is Chapter 13 bankruptcy. Filing for Chapter 13 bankruptcy stops the foreclosure process and allows you to repay past due mortgage payments over either a three-year or five-year period. In a Chapter 13 bankruptcy, you can catch up on your back payments while you continue to make your regular mortgage payments.
In New York State, the average foreclosure process lasts approximately 15 months from the date of the missed payment to the sale of the home at auction. Filing for bankruptcy protection stops the foreclosure at any stage up until the auction. Although you may have ample time to stop a foreclosure, the longer you wait, the more difficult it will be to catch up in a Chapter 13 plan.
For a free consultation to find out if you are eligible for Chapter 13 bankruptcy protection, call Buffalo foreclosure attorney Thomas Denny at (716)800-1234.