Answering Your Top 3 Questions About Foreclosure Prevention

Thanks to the economic instability that has persistently loomed over us since the onset of 2020, prices are soaring. From gas to rent and more, many are likely to find themselves thankful simply for having a roof over their heads.

But what if that were also thrown into doubt?

According to a press release distributed by Attom on March 10, “lenders repossessed 2,634 U.S. properties through completed foreclosures (REOs) in February 2022 … up 70 percent from last year.”

In other words, foreclosures have been on the rise.

And if you believe you may have a foreclosure on the horizon, don’t panic. There are steps you can take to save your home, and we’re here to help answer all of your questions:

What Is Foreclosure?

Foreclosure is the process by which the mortgage lender or lienholder of a property takes the property back after the homeowner has fallen behind on their payments.

“Foreclosure processes differ by state,” as explained by the Consumer Financial Protection Bureau (CFPB). “Under federal law, a servicer generally cannot start the foreclosure process until your loan is more than 120 days past due. There can be exceptions depending on your forbearance or other mortgage relief.”

In the State of Florida, foreclosure often takes several months to complete as the judicial process requires these cases to be worked through the court system. Once the lender has successfully filed, however, the state court clears the property title so that it may once again be sold without the involvement of liens or other such encumbrances.

How Do I Protect Against Foreclosure?

“If you are experiencing difficulties making your mortgage payments, you are encouraged to contact your lender or loan servicer directly to inquire about foreclosure prevention options that are available,” the U.S. Department of Housing and Urban Development (HUD) recommends.

That being said, there are other steps you can take to prevent foreclosure; namely, you can rely on bankruptcy. Chapter 13 bankruptcy, in specific, provides you the opportunity to get current on your loan while under court protection — and this can all be executed before your lender has even begun to file for foreclosure.

Thanks to the automatic stay that is imposed, a bankruptcy filing will even stop foreclosure in the event that you have unpaid property taxes and/or homeowner association dues. You will then have the opportunity to restructure your repayment schedule or modify your loan.

Where Can I Find Help?

When you’re facing the prospect of foreclosure, even the finer details of your to-do list may feel increasingly daunting. However, you don’t have to work alone in order to save your property — not when you can reach out to Dolaghan Law.

Here at Dolaghan Law, we are committed to personally walking you through the bankruptcy filing process so that you may find financial freedom in addition to lasting relief from other forms of unsecured debt.

Put simply, when you work with Dolaghan Law, you’re not alone.

Are you ready to learn more about the mortgage options and monetary rejuvenation afforded by bankruptcy? Then contact Dolaghan Law today by calling (904) 354-4935!