At Law Office of Robert W. Kovacs, Jr., we are committed to helping clients in Worcester get through their bankruptcy cases and avoid foreclosure. Foreclosure arises when a homeowner is no longer able to make their required mortgage payments. When this occurs, the lender can legally seize the property, evict the homeowner, and sell the property, as stipulated in the mortgage agreement. Below, we give you a few tips that you should follow if you want to avoid foreclosure.
Talk to Your Lender
Once you realize that you are going to have difficulty keeping up with your mortgage payments, you should immediately contact your lender and inform them about your financial difficulties. By informing your lender about your situation, it will give them the opportunity to work with you to create a repayment plan. Although you might be scared or embarrassed, it important to speak with them as soon as possible so that you can begin working together on a strategy that will help you avoid foreclosure on your home.
Learn About Your Mortgage Rights
After you have spoken to your lender, find and review all of your loan documents to so that you are sure you understand the terms of your agreement. In particular, look for what your lender can or can’t do if you are no longer able to make your payments. You should also research and learn about state and federal foreclosure laws and how they apply to your situation.
Respond to all Letters
When you receive your first foreclosure notice, it should contain a list of prevention options that can help you sort out your financial issues. This letter should also include important notices about possible or pending legal action that can be taken against you. Not opening or failing to respond to letters sent from your lender can hurt you if you end up in court.
When you are unable to keep up with the payments on your home, bankruptcy might be a viable option to save your home from foreclosure. If you file for Chapter 13 or Chapter 7 bankruptcy, the court will issue an Order for Relief, which grants an automatic stay that will immediately to put an end to collection efforts from your creditors. Doing this can postpone foreclosure on your home until your bankruptcy becomes final.
Speak to a Worcester Bankruptcy Attorney Today
It is important that you take foreclosure seriously and do not let yourself get further behind on your mortgage payments. Ignoring a potential foreclosure will only make it more difficult to reinstate your loan and increases the likelihood that you will lose your home.
Our skilled bankruptcy attorneys are here to help clients who are overwhelmed by debt and don’t think they can repay it. We understand that bankruptcy is a difficult decision, and we will guide you through your case and answer all of your questions and concerns.
Contact us to schedule a free case evaluation with our Worcester bankruptcy team.