How Do I Stop Foreclosure in San Francisco?
A San Francisco bankruptcy lawyer answers questions related to How to Stop Foreclosure in San Francisco?
What is foreclosure?
A foreclosure is the sale of a home through auction, by a bank or other lender, when the mortgage payments are in default. The purpose of the sale is for the bank to take the proceeds to pay off the mortgage amount. Any difference between the amount owed and the amount sold is called a deficiency, which the bank can then come after the owner for.
How does a foreclosure start?
Generally, an individual who wishes to purchase a home will borrow money from a bank or other lender. A contract is made whereby the borrower agrees to make monthly payments of a certain amount for a certain number of years. The terms of the contract will also state that if the borrower fails to make payments, the lender can obtain a court order to foreclose on the home. Notice is given to the lender either to pay the amount owed or else the home will be sold at auction.
How can I stop foreclosure?
There are various ways in which an individual can stop foreclosure of his or her home. Sometimes just explaining your financial circumstances to the bank will persuade them to give you more time to catch up on payments. Other alternatives include seeking a loan modification, which is a separate contract aimed at making the monthly mortgage payments more manageable. Often, however, the only way to stop foreclosure is to file a bankruptcy petition.
How does bankruptcy stop foreclosure?
When you file a bankruptcy petition, an automatic stay goes into effect, which will stop foreclosure, wage garnishment, and other legal proceedings against you. The stay will allow you to remain in your home and the bank will not be allowed to proceed with the foreclosure. The hope is that during bankruptcy you can work out an arrangement to develop a plan to catch up on the amount you are behind on your payments. If it turns out there is no feasible way to catch up on your payments, the filing will at least stop the foreclosure long enough to allow you more time to consider your options regarding your living situation.
If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!
