Do I Need A Foreclosure Attorney?

If you are behind on your mortgage payments and facing foreclosure, or already in foreclosure? If so, one option to stop foreclosure is to file for bankruptcy, Contact the Walker Law Firm today for a free consultation on bankruptcy and debt relief.

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As a secured loan, a mortgage allows the lender to reclaim or repossess the property if payments are not made on the loan.

Bankruptcy As a Foreclosure Defense

Bankruptcy will stop all foreclosure proceedings in their tracks at any time during the process, even if your home has been put up for auction. But you must act quickly and talk to a bankruptcy lawyer ASAP if you want to save your home and avoid eviction.

Our Foreclosure Lawyer Can Help You Stop the Legal Action Against Your Home

The process of repossession is known as foreclosure. Foreclosure is a complicated and time sensitive process that can lead to you having to give up your home. Bankruptcy can offer immediate relief through the Automatic Stay. Once a petition for bankruptcy has been filed, the Automatic Stay halts collection activities including those for overdue mortgage payments and foreclosure costs. While the outcome may differ depending on whether Chapter 7 or Chapter 13 is filed, the Automatic Stay will temporarily stop the foreclosure process, and any eviction proceedings that may have been initiated.

My Home Is In Foreclosure, Can I Still Keep It?

Foreclosure Under Chapter 13

For a petitioner who intends on keeping their home, Chapter 13 may be the best option. If you can realistically foresee being able to resume making payments, the payments can often be reduced as part of the Bankruptcy Court’s approved repayment plan. The repayment plan tends to last from 3-5 years as part of the bankruptcy process. As long as all payments are made under the terms of the bankruptcy agreement, you can keep your home. In some cases, some mortgage related debt can be discharged and reduced permanent payments can be negotiated.

Foreclosure Defense in Alabama

The Walker Law Firm provides foreclosure defense in the Greater Dothan, Alabama area.

COURT ORDER NOT REQUIRED

If you own a home in Alabama, it is important to be aware that Alabama is a non-judicial foreclosure state. What this means is that a court order is not required for a mortgage holder to take back the house or property. This makes it more difficult for a foreclosure lawyer to help you renegotiate or modify your mortgage, or to make a claim of wrongdoing on the part of the lender.

NOTICE NOT REQUIRED

In Alabama, the mortgage company will not always send you notice that your mortgage is in foreclosure, but they are required to publish a notice of foreclosure in a local newspaper for three weeks in a row. After this, the mortgage company can sell your house.

STOP THE PROCEEDINGS IMMEDIATELY

While the options for foreclosure defense may be limited in Alabama and other states that don't require a court proceeding for lenders to take a property back, filing for bankruptcy will halt the foreclosure process immediately. Foreclosure is a time sensitive process and if you are looking to keep your home, you need to act quickly. Once your home is sold at auction it will be too late for Chapter 13 Bankruptcy to offer any protections.

Your Repayment Plan

In general, since Chapter 13 Bankruptcy requires a repayment plan, the bankruptcy trustee must know that you are working or otherwise have a sustainable income. If this is the case, bankruptcy can give you the opportunity to repay any missed mortgage payments so you will be current in your payments by the time your Chapter 13 Bankruptcy is discharged.

Under a Chapter 13 Bankruptcy, your monthly payments under the repayment plan are made to the bankruptcy trustee who in turn, transfers the money to your lender. The repayment plan can also include the opportunity to catch up on car payments, or payments on any other secured purchases.

Should I Keep My Home?

Foreclosure Under Chapter 7

Under Chapter 7 the Automatic Stay offers you time to negotiate payments with the lender. Chapter 7 also allows the mortgage to be discharged. If the mortgage is discharged the lender will be able to reclaim the property after the bankruptcy is discharged. While the you will likely need to find a new place to live, any debt related to the mortgage or foreclosure including the remaining balance of the mortgage, interest, late fees, and collection costs, is wiped out.

Sometimes this can be the preferred option if you don't believe you can afford to get caught up with your mortgage or make regular, on-time payments to the lender or mortgage holder. It can be an overwhelming decision to make. If you do choose to give up the home, you can usually continue to live there until the house is sold. If you are uncertain about the best choice under the circumstances, a lawyer experienced with foreclosure defense can help you decide what move would be in your best interest.

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The Walker Law Firm

If you are behind on your mortgage payments, or facing the prospect of foreclosure or eviction, call us today for a FREE consultation!

We have a working knowledge of the bankruptcy process in Alabama and can help you keep your home. We are a Dothan, AL Law Firm, our experienced foreclosure attorney is ready to hear your story!