Anyone facing foreclosure in Hamilton, OH may wish to consider bankruptcy to save their home. Chapter 7 allows a homeowner to delay the foreclosure process for a number of months, possibly allowing them to get caught up on the payments or refinance the loan. Others opt to file chapter 13 bankruptcy to save their home permanently. When a person falls behind on their mortgage payments, the lender has the right to start this process, but it doesn’t happen overnight. It’s when the process has reached a critical stage that many seek legal advice; however, the sooner this is done the better it is.
When bankruptcy is filed, the foreclosure proceedings stop immediately. This is done when the court issues an order for relief, which includes an automatic stay. Collection activities stop immediately when this order has been issued, and any sale of the home will be delayed for a period of three to four months; however, there are two exceptions to this. First, the bankruptcy court may grant a motion to lift the stay. The lender files this motion and the home may be sold in a much shorter time period, often two months.
If a foreclosure notice has already been filed, the time period is also reduced. When the notice of default provides a time period, say a time period of three months, and the homeowner doesn’t file bankruptcy for a month, the period still elapses and the lender can ask that the foreclosure sale is held after only two months. For this reason, a homeowner must act quickly in this situation to ensure they are able to work out a way to keep their home.
Chapter 13 allows a homeowner to catch up on their payments over a period of time as long as they can continue to make the regular payments while doing so. Chapter 7 allows a homeowner to remain in their home for a period of time without paying any mortgage payments, and the money saved during this time will enable the homeowner to purchase a new home. Chapter 7 doesn’t cancel the foreclosure and, in most cases, won’t allow the homeowner to keep the home. Speak to R. Dean Snyder (Deansnyderattorney.com) to learn more about bankruptcy and how this option may be used to stop foreclosure in Hamilton, OH proceedings today.
