Stop Foreclosure ASAP in Raleigh, NC!
Stop Foreclosure in Chapter 7,
the lender is entitled to apply to the Court for permission to go forward with the foreclosure. So, in Chapter 7, although your debt may be discharged, a secured lender will be able to get collateral back (rental property, real estate, house or home) IF you don’t pay for it. You will need to catch up on what you are behind IF you want to keep your rental property, real estate, house or home. Chapter 7 only removes your personal liability for a debt: It normally can’t remove a lien or mortgage unless it is a judicial lien from a lawsuit, and even then it requires extra work and cost.
Stop Foreclosure in Chapter 13,
you will be able to keep the rental property, real estate, house or home and stop foreclosure by catching up on the payments within a 5 year period. Sometimes people file a Chapter 7 to get rid of unsecured debt first, and then file a Chapter 13 quickly enough to avoid foreclosure but to not have to pay any of the unsecured debts in their Chapter 13.
If you have negative equity in the rental property, real estate, house or home or a bad mortgage rate
you may want to allow the home to go back in a foreclosure and live in it rent-free while it is in foreclosure. You can save up those mortgage payments and then use them as a down payment later when you can finance a home. If you let a home go back to the bank in Chapter 7, it will take about 2 months to 5 years before you will have to move (due to the length of time it takes to foreclose and sell the house). This time is spent rent free in your home while the foreclosure happens, and you will owe no deficiency balance because of your bankruptcy filing! (Please note that you are responsible for any property taxes and HOA dues that are incurred after your bankruptcy case is filed and while the property deed is still in your name.) Then 2 years after a discharge in bankruptcy or 3 years after the foreclosure sale you may be able to purchase a home at the current prime interest rate! Many people qualify for a sub-prime mortgage the day after a bankruptcy.
your lender may be willing to do is to accept the deed of your property in lieu of foreclosure. This saves them the time and expense. This also MAY keep the foreclosure off your credit report and make buying a home in the future easier. Unless you have judgments against the property, this makes a lot of sense for them to do. Unfortunately, not every lender has a lot of sense, and they may refuse even though it could cost them in excess of $1000.
If you don’t file bankruptcy
and your home is sold in foreclosure and the sale does not pay the full debt you owe, you probably will be sued for any remaining amount (deficiency), plus closing costs, up-keep and repair costs, Realter® and attorney fees with interest.