Foreclosure occurs when someone is unable to pay the mortgage on their home, or is extremely behind on payments of that home or property. What happens after these payments aren’t made is that the bank or agency that administered the loan tries to return that property or home to their possession. What they decide to do next after they have the property in their possession is up to them, but they generally attempt to auction it off with the proceeds going towards the debt owed by that property owner.
Options in a Foreclosure
Local and state laws will vary on the specific options that someone can take if they are facing a foreclosure on their home or property. Discussing these matters with an experienced and skilled foreclosure lawyer such as CT Bankruptcy Attorneys will help to ease the burdens of a foreclosure and help to answer questions about the details of the process. Bankruptcy may be one of the options that they discuss. Two different types of bankruptcies are common to file in a foreclosure. Those two types are chapter 7 and chapter 13. If someone desires to have the process of foreclosure done and over with as soon as possible, then chapter 7 may be the right option. Due to the home or property going to auction quickly in a chapter 7 bankruptcy, that is why some people opt for that path. Chapter 13 gives the property owner a much stronger chance at remaining in the home for an extended period of time than chapter 7 does. Chapter 13 also comes with its own rules where balances will need to be paid in addition to the mortgage.
If you are someone who is thinking about buying a home or property, or someone who is beginning to fall behind on mortgage payments, then there are some crucial steps to take to avoid foreclosure. Taking a look at the value of the home or property is a crucial first step as depending on what is owed on the property it may still be possible to receive more for the property than what is owed on it. Finding other ways of income is something else that can be considered, as having a home is one of the most important things in life and that home should be protected. If all else fails, then having a lawyer on your side to assist with all of the nuances and details may be beneficial and help you to keep your home.