Foreclosure can be a scary reality for some people. If they are facing the possibility of having their home foreclosed, they may be unsure of their future. The possibility of losing your home and not having anywhere to house your family is stressful. Shelter is a necessity and a home can become sentimental to families and all those living inside it. It may be time to take more drastic measures to get your finances in order. One way to stop the foreclosure of your home is by filing for bankruptcy. The two forms of bankruptcy for individuals can prevent foreclosure of your house. These are known as Chapter 7 bankruptcy and Chapter 13 bankruptcy. When you file for these two bankruptcy processes, an automatic stay goes into effect to prevent creditors from contacting you. With this in effect, it can also prevent foreclosure of your home.
What is a short sale?
By going through a short sale, you may also be able to defend yourself against foreclosure. A short sale is when a lender agrees to take a loan payoff that is less than the value of the mortgage. Although this can impact your credit, it may not cause as many negative effects as filing for bankruptcy or facing foreclosure can. If debt regarding your estate has become overwhelming, this can be a good option to improve your situation. The pressure to pay your required costs may seem less overwhelming. With this option, individuals can take matters into their own hands to readjust their financial plan.
A short sale goes must be approved by the lender in order for it to be guaranteed. Once it is approved by the lender, you cannot receive any of the proceeds from the sale. Instead, the closing costs are paid by the bank. If there is evidence showing that you can afford your mortgage, the lender has the right to deny your request for a short sale due to the finances that they examined. During the process of a short sale, there are many factors that can impact the success of the sale. If there are multiple loans, one of the lenders for that loan may reject the payoff that is being offered to them. This action has the ability to set the whole process off target. Other impactful factors can include mechanic’s liens, outstanding homeowners or association dues, tax liens and liquid assets that can cover the shortage of the loan.
Matters related to bankruptcy and estate planning are very significant in one’s life and require the services of an experienced attorney. Our firm proudly serves clients throughout Rockland County and New York State. If you need effective legal guidance, contact Koplen Law today to schedule a consultation.