There are times when a creditor will work with you to deal with a debt.
Occasionally, your mortgage company falls into this category. If you’re struggling to meet your payment obligations or you’re a month or so behind on payments, you might be able to negotiate an arrangement that allows you to catch up on payments.
However, if you’ve fallen far enough behind that foreclosure is a possibility, you are no longer in a position where you should trust your mortgage company. The number one goal of the mortgage company is to get the money you owe them and they will take the avenue most likely to achieve this.
If you’re in the early stages of financial problems, their best approach is to work with you. But once the problem has progressed and things look bleak, their best option is to fight against you.
Keep in mind, fighting for the money they are owed doesn’t necessarily mean they will be nasty or even seem as if they are working against you.
Sometimes, it will seem as if they are offering comfort and understanding – when it fact they are taking measures to remove you from your home. For the bank, foreclosure isn’t personal – it’s a means to get the money. So don’t be surprised if the people you deal with are polite and seem supportive, but wind up taking your house away from you anyway.
The most important thing you can do is to understand the legal aspects of foreclosure and know how the process works.
It’s also important for you to know that bankruptcy is one of the few things that stops foreclosure proceedings in their tracks.
Filing for Chapter 13 stops foreclosure and provides you with needed time to catch up on mortgage payments. It can also provide an opportunity to refinance or otherwise modify your mortgage to make it more affordable. Best of all, this can all be done without you having to leave your home.
The best way to deal with the threat of foreclosure is to act as soon as possible.
In some cases, this means filing for bankruptcy earlier than you might think necessary. Too often, people view bankruptcy as a last resort, which is likely due to the negative stigma attached to filing.
Look at it this way: if the difference between keeping and losing your home is filing for bankruptcy and dealing with a little bit of negative judgement from family and friends, what’s your best option?
Filing for bankruptcy is a legal process that creates something known as an automatic stay. The automatic stay stops all collection efforts, including foreclosure. It’s one of the greatest assets of bankruptcy and gives you time to gather your thoughts and organize your finances without ongoing creditor harassment and threats.
For more information on how the automatic stay works to protect you, check out this information from Cornell Law School.
If you’re behind on your mortgage payments and concerned foreclosure could be in your future, we can help. The mortgage company isn’t going to look out for you, but we will. Saving your home is what matter and you’re going to need assistance.
For more information or to schedule a consultation, contact the Law Offices of Robert M. Geller at 813.254.5696 to schedule a free consultation.
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