Foreclosure is a legal process where the lender attempts to collect money owed from a borrower who has not kept up with payments on his or her home. During the process the lender forces the sale of the home, which is the collateral, to do so. If you are going through the process of Foreclosure in Wellington FL, there are a few common questions you may want answered.
Will a bank negotiate with the homeowner to avoid foreclosure?
If you have an adjustable rate mortgage, or if you are several months behind on payments, the bank may work with you. You need to contact the loss mitigation department to discuss setting up partial payments for a few months and making up the difference at a later date. They may also work with you to modify the loan terms.
Can filing bankruptcy stop a foreclosure?
When you file bankruptcy, it can delay the Foreclosure in Wellington FL, but it cannot stop it permanently. When you file bankruptcy the court issues an automatic stay that protects you from your creditors, which stops garnishments and foreclosure proceedings. This means the foreclosure sale of your home is put on hold while your bankruptcy petition is pending.
If you file Chapter 7 bankruptcy, you can remain in the home for several months without paying, giving you time to save money to obtain new shelter. However, if the court gives the lender permission to go ahead with the sale, the sale may go forward within a couple of months.
What about selling the home for less than what it’s worth?
Selling a home for less than what you owe is known as a short sale. You will need the lender’s permission to do so. The lender is not required to release the lien on the home until the mortgage is paid in full. If the lender does consent to a short sale, he or she may still sue you to collect the remaining money owed on the home. So, if the lender agrees to a short sale, make sure you have a written agreement that releases you from any liability.
If you are going through a foreclosure and have questions, feel free to contact the Law Offices of Sean I. Koplow to assist you with legal matters.
