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Protecting yourself During a Foreclosure with a Bankruptcy Attorney


More and more homeowners are becoming concerned about the prospect of bankruptcy as well as foreclosure. Those homeowners who feel they may be facing foreclosure in the near future have discovered that hiring an attorney experienced in matters of bankruptcy can be a smart move in terms of providing protection against the possibility of foreclosure. The reasons for hiring an attorney during this important time of your life are certainly sound. One of those reasons is the fact that lenders may attempt to come after you for the rest of the balance on your home's mortgage even after they take possession of your home if they are not able to recover enough money from the sale of the home to cover the total of the balance. This is in spite of the fact that you will no longer be allowed to live in the home.

It is for this reason that you take steps to ensure you are as protected as possible. The best way to do that is to obtain legal representation. You must also understand that the foreclosure process actually goes through a number of phases and will actually take some time. This can be used to your advantage because it gives you time to consult with an experienced bankruptcy attorney. When speaking with an attorney, it is important that you take copies of all documentation related to your foreclosure and provide those copies to your attorney. You should also provide your attorney with all documentation related to your original mortgage. This will provide your attorney with the information he or she needs in order to file what is known as a response to the foreclosure notice your lender has filed against you.

During this time, your attorney will begin working on what is known as an affirmative defense. It should be understood that the defense will not necessarily deny the foreclosure allegations that have been made against you, but will provide a reason as to why you should not be held liable. Your attorney will also be able to issue counterclaims on your behalf.

There are two phases during this process which will often take the longest. They are the documentation and discovery phases. What is important to your circumstances during this time is that these processes will provide you with time to remain in your home. In some cases, you may be able to remain in your home for a year or perhaps even longer. This will also provide your attorney time to try and negotiate with your lender regarding a compromise. Such a compromise might include a loan modification. If you are not familiar with a loan modification, it can include a variety of strategies that can make it more affordable for you to stay in your home or to at least exit your mortgage as gracefully as possible. Such strategies might include a deed in lieu of foreclosure, a short sale, forbearance, reduction in interest, reduction in principle or refinancing.

In the event you are not able to reach an agreement with our lender, your attorney may then advise you to file for bankruptcy; either through Chapter 13 or Chapter 7. Your attorney will advise you regarding the requirements for each type of bankruptcy and which option may best suit your individual circumstances. While bankruptcy may be a last resort, it should be recognized that as a federal law, your bankruptcy case will take precedence over any foreclosure suit that may have already been filed. This will serve the purpose of immediately putting a stop to any and all collection attempts, including those from your lender. Once your attorney has filed the bankruptcy case, the court will order a stop to the foreclosure suit and this will prevent the lender from taking possession of your home. The lender will also be stopped from any eviction efforts or attempts to sell your home. You will also receive additional time through the bankruptcy suit in order to work out other possible solutions with your lender. During this time you will be allowed to remain in your home.

There can sometimes be a temptation among homeowners facing foreclosure to simply allow the lender to take the home and walk away. That may not always be the case; however. This is particularly true if the lender opts to come after you for the balance on the mortgage, even after they have taken the home. Hiring an attorney to represent you during this difficult time can be a wise investment that may even allow you to stay in your home.


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