How Do I Stop Foreclosure

How Do I Stop Foreclosure?

            Foreclosure is stopped by filing either a Chapter 7 or Chapter 13 Bankruptcy.  At the Slomka Law Firm, we evaluate all options for clients facing foreclosure, and recommend the most effective and appropriate legal options.  In MOST cases, clients who are behind on their mortgages and desire to keep the home should file a Chapter 13 repayment plan.    This plan allows you to stop the foreclosure, move forward with the mortgage (paying monthly of course), and freeze the arrearage with no penalties or interest.   The arrearage is then paid very slowly, over 3-5 years, by paying a monthly plan payment to the trustee.  The trustee will also use these funds to pay other secured debts you may have (like a car loan) and the fees and costs associated with a Chapter 13 Bankruptcy.

            Chapter 7 Bankruptcy is a better option for clients facing foreclosure who desire to walk away from the home and the debt.  If your home is worth far less than your loan balance, or if you owe many past payments, this option may be worth considering.

            A final word:  Do NOT ignore foreclosure notices merely because you are in loan modification discussions with your lender.   All of the tools at your disposal become meaningless one minute after foreclosure,  Come see us at the Slomka Law Firm and we will give you solid advice at a free initial consultation.