The Foreclosure Timeline
First and foremost, you must fall behind on your mortgage payments in order for the mortgage company to foreclose. There is no set amount that you have to fall behind before the mortgage company can begin the foreclosure process. Often this will depend on your payment history, the policy of the mortgage company, or the overall economic climate.
Stop Foreclosure with Chapter 13 Bankruptcy
When facing foreclosure you are put on a very strict timeline to figure out how to resolve the delinquent mortgage payments. By the time the foreclosure process is implemented, the mortgage company is unlikely to work with you to modify or refinance the mortgage to make the debt current.
Chapter 13 can be the best option to stop the foreclosure.
- Chapter 13 Stops Foreclosure. Chapter 13 Bankruptcy will immediately cause the foreclosure process to stop in its tracks through the implementation of the “Automatic Stay”.
- File Chapter 13 Anytime Prior To End Of 10 Day Upset Period To Stop Foreclosure. A Chapter 13 that is filed at any time during the bankruptcy process will stop the foreclosure. At the latest, the Chapter 13 must be filed before the end of the 10 Day Upset Period. As a more practical way of saying this: the Chapter 13 must be filed within 10 days after the foreclosure sale date.
- Delinquency Is Paid For Through Chapter 13 Payments. Chapter 13 Bankruptcy creates a debt payment plan. This monthly payment includes the regular monthly mortgage payments AND the amount the mortgage is behind. At the conclusion of the bankruptcy the mortgage will be current.
- Mortgage Company Cannot Refuse To Accept The Chapter 13. In most cases, the mortgage company must accept the Chapter 13 bankruptcy, must accept receiving the regular monthly mortgage payments, and must credit payments received to the delinquency.
- The Mortgage Company Cannot Restart The Foreclosure Process After The Bankruptcy. If all Chapter 13 Bankruptcy payments are successfully made, then the mortgage will be current at the conclusion of the bankruptcy. The Bankruptcy Court will enter an order deeming the mortgage current. The mortgage company is prevented from foreclosing.
- After The Bankruptcy The Mortgage Payments Will Be Made Directly To The Mortgage Company. At the conclusion of the bankruptcy monthly mortgage payments are again made directly to the mortgage company until the mortgage is paid in full... as if bankruptcy had never been filed.
If you're facing foreclosure, contact iBankruptcy today
By completing our intake form and providing us with the necessary documents, attorney Pete Jarvis will be able to review your situation and help you save your home while managing your debt situation sustainably.
Or call our office at (336) 431-9155