If you’re a homeowner who has gotten behind on their mortgage payments, you may be feeling the burden of impending foreclosure. If you have taken out more than one mortgage on your property, this feeling may be especially intense. Fortunately, filing for bankruptcy can provide some much needed financial relief for those homeowners who have found themselves in these types of bad situations. For those who are wondering how filing a bankruptcy petition can actually help you stay in your home, here are three ways that it can Stop Foreclosure St. Louis and help you get back on track:
Granting an Automatic Stay
One of the best things about filing a bankruptcy petition is that it can bring immediate relief from the pressure of foreclosure. This is because the bankruptcy court will issue an automatic stay that lefts your creditors know that they must stop all collection efforts right away. Consequently, any foreclosure sales will have to be postponed, provided that you have not already been notified of the sale date.
Catch Up On Late Payments
For those homeowners who owe late mortgage payments, filing for Chapter 13 bankruptcy can give you a chance to live up to your end of the bargain. This type of bankruptcy requires that you create a payment plan that will allow you to bring your payments current (by paying off the arrearage) over the course of three to five years. If you can stick with the plan, you’ll be able to keep your home.
Getting Rid of Additional Mortgages
If you have more than one mortgage payment, a Chapter 13 petition may qualify you for something called “lien stripping”. If your home’s value is equal to or less than your first mortgage, you may be able to have any additional mortgages stripped from your home. The bankruptcy court would then be able to classify the debt as unsecured, and you may not have to pay it back.
Those looking to protect their investment and Stop Foreclosure St. Louis can definitely benefit from having an attorney to help them through the bankruptcy process. If you’re thinking about filing a petition, get in touch with the professionals at Law Offices of Steven K. Brown St. Louis.
Their legal team will not only be able to help you find answers to your questions, but they’ll help you get on the path to living a life free of the financial burden of foreclosure. Click Here for more details.
