Missing a couple of mortgage payments is something that can happen to anyone, we don’t have control over every circumstance and can face situations that lead us into financial difficulties. It’s advisable to approach your lender on possible solutions once you know you can’t meet up with the payment, other than waiting for your lender to initiate foreclosure. However, if you are already facing foreclosure, there are still several options you can explore to stop foreclosure. In Massachusetts, your lender must own the mortgage to be able to initiate a foreclosure, and if they are not the direct holder of your mortgage, you can sue them. Although many homeowners pursue this method over the years it has proven to be a waste of time and many end up losing their home.
Another option explored is loan modification but it’s also not so effective at stopped foreclosure. The reason is that most lenders prefer to help you with a loan modification before foreclosure is initiated. However, if you approach your lender earlier enough, usually within the first month a foreclosure was initiated, you can still be granted. So is there any option that is highly effective in Massachusetts? Yes, and that is filing for bankruptcy.
If you are to file for bankruptcy, here are a couple of things you should know:
It’s a legal process and it will be better if a lawyer helps you with it, this will help you prevent mistakes that can cause you unnecessary charges.
You can file for chapter 7 or chapter 13 bankruptcy, however, both have advantages and disadvantages. Discuss with your lawyer to discover the best for your financial situations.
Provided an automatic stay order was given by the bank before the sale was finalized, you can save your home. Even if the order was given 5 minutes earlier, the sale will be canceled. So you can consider filing for bankruptcy if you have run out of time.
For information on foreclosure defense call us at (877) 399 2995. We offer litigation document review support, mortgage audit reports, securitization audit reports, affidavit of expert witness notarized, and more.