Other ways to stop foreclosure: Bankruptcy
Once this plan is approved, your home is firmly back in your hands, and provided that you keep up with your reduced monthly payments and your current mortgage amounts, your lender can’t come after you any more.
As this blog has discussed previously, if you’re a Minnesota resident and you’ve fallen behind on your mortgage payments, your lender may have initiated the foreclosure process. It can be overwhelming if you’ve received this notice, but there are a number of ways in which you can stop foreclosure of your home.
While you should always consult an experienced Minneapolis Chapter 13 bankruptcy law firm, one of the methods to ensure that you stay in your home is to file for Chapter 13 bankruptcy. While you should always consult an experienced Minneapolis Chapter bankruptcy law firm in order to determine whether this is the right path for your family, filing for protection can help you avert foreclosure.
Another option for stoping the foreclosure sale on your home, is by recording and serving a Affidavit of Postponement under Minnesota law. Unlike a Chapter 13, the Postponement only delays your foreclosure, given you five additional months to cure the mortgage arrears. In a Chapter 13, your five year repayment plan is binding on the mortgage lender and they cannot foreclose at all.
When you file for bankruptcy, all of your debts are essentially “frozen.” This means that creditors can’t keep knocking on your door, and your bank can’t move forward with the foreclosure process or a sheriff’s sale.
From there, in Chapter 13, you will work with your bankruptcy attorney and the court to determine how you will pay down your debts over time. Often, you will propose a monthly payment, which will then be approved by a judge.
These monthly payments usually last between three and five years. Your lawyer can advise you on a feasible payment amount based on your income, the debt you currently owe and your projected future expenses. Once this plan is approved, your home is firmly back in your hands, and provided that you keep up with your reduced monthly payments and your current mortgage amounts, your lender can’t come after you any more.
If you are struggling with mortgage payments, contact an experienced lawyer to obtain Minnesota foreclosure assistance. The professionals at Atlas Law Firm can advise you on which path will be best for your family.