Foreclosure Homes Hialeah

Bankruptcy Laws That Work In Your Favor

These days quite a few people are having so many financial problems including losing their homes. But what if you can’t pay your bills and even your mortgage is behine? You might want to try filling for foreclosure first instead of bankruptcy. There are many reasons to file for foreclosure instead, here are a few.

Typically, the foreclosure process begins soon after a homeowner gets behind on their mortgage payments. This can happen immediately, but normally after a 60-90 day period has passed or at least three payments are missed. Obviously you will have some warning before the bank files the foreclosure in court and gives you some notice. The lender will later try to sell the home at an auction in order to recoup the money for the loan.

Usually a mortgage company won’t begin the foreclosure process until you’ve missed several payments, often three or four. That gives you time to try some other actions, such as selling the home, getting loan forbearance, or giving up the deed in lieu of foreclosure. Make sure you know the facts about Florida bankruptcy laws.

Whether you file a Chapter 13 or Chapter 7 bankruptcy the court automatically issues an order called the Order for Relief that includes something known as the ‘automatic stay.’ The automatic stay directs your creditors to stop all their collection activities immediately. If your home is scheduled for a foreclosure sale, the sale will be postponed while the bankruptcy is pending, typically for three to four months. However, there are a couple of exceptions to this rule:
If the lender obtains the bankruptcy court’s permission to proceed with the sale by filing a ‘motion to lift the stay’, you may not get the full three to four months. However even then, the bankruptcy will most likely postpone the sale by at least two months or more if the lender is slow in pursuing the motion to lift the automatic stay. This is a matter of decision on the banks part, many are up to their eye-balls in foreclosures already and can’t make it in time.

Unfortunately, bankruptcy’s automatic stay won’t stop the countdown on the advance notice that many states require before a foreclosure sale can be held or a motion to lift the stay can be filed. Before selling a home in most states, a lender is required give the owner at least three months’ notice. So if you receive a three-month notice of default, and later file for bankruptcy after month have passed, the three-month period would elapse after you’d been in bankruptcy for only one month. At that time the lender could file a motion to lift the stay and ask the court for permission to schedule the foreclosure sale.
Many people will do whatever is necessary to stay in their home for as long as possible. If you in this situation and you’re behind on your mortgage payments with no possible way to get current, the best way to keep your home is to file a Chapter 13 bankruptcy.

Chapter 13 bankruptcy lets you pay off your late payments over the length of a repayment plan you propose, from three to five years in most cases. But you’ll need enough income to at least meet your current mortgage payment at the same time you’re paying off the back debts you owe. If you make all the required payments up to the end of the repayment plan set up by the court, you’ll avoid bankruptcy law facts and keep your home.

Florida Foreclosed Homes