The thought of losing your home is likely overwhelming and extremely distressing. Facing foreclosure can lead some people to fall prey to scams or believe inaccurate information. Any kind of misinformation about the home foreclosure process can lead to the possibility of losing your home even when there are other options available. Instead of fearing the process or following bad advice, Florida homeowners need to understand the facts so that they can make the best decisions for their families.
Foreclosures can be stopped by filing either a Chapter 7 or a Chapter 13 bankruptcy. This is the result of what is called the “automatic stay.” The automatic stay is a provision in the U.S. Bankruptcy Code. This will remain in effect unless your lender convinces the court that you are so delinquent on your mortgage payments that you will not be able to make the payments necessary to bring the loan current.
It is important to remember that you must still continue to make payments on your home even after filing for bankruptcy, if you wish to retain ownership. Often, a bankruptcy filing stops automatic payments, so it is wise to ensure that your payments are still being sent to your lender. If your payments stop, your lender may attempt to have the court remove the automatic stay so that the foreclosure process can resume.
While investigating all of your options is recommended, some solutions may only pose more problems later and fail to address the financial problems that led to a foreclosure. Bankruptcy can put a stop to the home foreclosure process and help discharge stifling debt. A Chapter 13 bankruptcy’s repayment plan can give Florida homeowners the chance to catch up on payments and avoid losing their homes altogether. If you are concerned about a possible home foreclosure, our website can provide current information that may help you determine if a bankruptcy filing is right for you.