Foreclosure: Saving Your Home Before It's Too Late
The dramatic downturn in the economy and the collapse of the housing market has led to record levels of home foreclosures. Hard-working, honest people who lost their jobs or were lured into "teaser" mortgage rates -- only to see their monthly payments skyrocket -- are losing their dream homes in Raleigh and across North Carolina through no fault of their own.
Have you fallen behind on your home payments because of job loss, illness, divorce or the death of a loved one?
Don't wait until the bank takes your home from you. There is another way.
An experienced Raleigh debt consolidation attorney can explain the many legal options available to you that will give you time to get caught up on your payments, often at lower monthly amounts that you can afford to pay.
A Raleigh bankruptcy lawyer can also help you stop foreclosure. Foreclosure proceedings start after you've fallen behind on your payments by two months or more, though in North Carolina, a new law means you are entitled to 45 days advance notice before foreclosure proceedings can begin.
Still, you may have tried renegotiating the loan with the lender or holding a so-called short sale in which you sell the house for whatever you can get. If those and other strategies don't work, what is your next step?
One of those options may be bankruptcy. Some homeowners fear the idea of bankruptcy and believe pursuing that option means they will lose everything. In fact, you could emerge from bankruptcy in far better shape, because the law is intended to protect honest individuals from creditors and give them a chance to get their finances in order and make a fresh start. Once you file for bankruptcy, you win an "automatic stay" that stops the debt collectors and any foreclosure proceedings while the court considers your application.
While the most common form of bankruptcy -- called Chapter 7 for its name in the U.S. Bankruptcy Code -- requires you to bring your home payments up to date before filing, another type, called Chapter 13, can offer you a lifeline to keep your home. This type of bankruptcy, which is typically used by individuals who have income to pay some or all of their debts when given more time, allows you to "catch up" on back payments over a period of years without losing your home. You'll still need enough income to stay current on your monthly loans while paying off the back payments and interest.
But, through bankruptcy, you have the chance to reduce or eliminate unsecured debts, such as credit card balances, that will free up money to make mortgage payments. Unsecured debt refers to loans that are not secured by an underlying asset such as a home or a car. Most credit card bills are unsecured debts.
It's important that you contact a Raleigh bankruptcy attorney as soon as it becomes impossible to stay current on your mortgage. Once the bank starts foreclosure proceedings, it can ask the court to lift the prohibition on the sale of the home during bankruptcy proceedings if it has met the legal timetables.
A Raleigh bankruptcy lawyer can help you potentially avoid bankruptcy by helping you negotiate with your lender. And if bankruptcy becomes your best step, a bankruptcy lawyer will make sure that you take full advantage of the law, which is, after all, intended to protect individuals like yourself who have become overwhelmed by debt.
