Foreclosure in Casa Grande AZ: Bankruptcy and Lien Stripping
Everyone dreams of owning a beautiful home some day. This is the reason people get mortgages and spend many years making payments for the home of their dreams. Learning that your home could be up for foreclosure is every homeowner’s worst nightmare. However, with the right legal guidance, it is possible to avert and imminent foreclosure and save your home. Here is what you need to know about filing for bankruptcy as a way out of .
How filing delays the foreclosure process
To gain the benefits of a bankruptcy, you need to start the filing process before the mortgage lender can issue a notice of default. When you file for a chapter 7, the court will place an automatic stay on all personal assets, such as a house. Although the lender may contest the stay, it will give you a month or two to get the money needed to bring the payments up to speed.
When you file for a chapter 13, the process is completely different. If you are successful in filing, the court will need you to make an arrangement about the length of time in which you will be able to repay the accumulated mortgage, and the lender will have to bear with your terms, provided that you are able to manage the terms.
Lien stripping
There are people that, after some years of paying off the first mortgage, choose to mortgage off the house in a bid to get money to meet other needs. If you have taken out a second mortgage or third one on the house, it is possible to avoid making payments for the two other mortgages through what is known as lien stripping. This is however only possible if the total amount of money you still owe the lender is more than the current market value of your house. Note that stripping is not done on a first mortgage.
These are a few things that talking with a lawyer will help you learn about Foreclosure Casa Grande AZ. If you are having debt problems and fear foreclosure, talk to a lawyer about bankruptcy. to learn how to save your home.
