If you are facing a foreclosure on your home, vacation home, or real estate, we may be able to help. In some situations, a Chapter 13 bankruptcy can restructure your financial situation in order to allow you to be able to take your home or real estate out of foreclosure and catch you up on the back owed payments. We can help save houses in Missouri, Kansas, and Oklahoma.
However, if a Chapter 13 bankruptcy is not feasible in your situation, we can help you find other alternatives to saving your house from foreclosure and keeping your family in your home.Foreclosure Basics
A foreclosure is the legal proceeding of a creditor to repossess the collateral for a loan that is in default. This means that your mortgage company will attempt to gain possession of your house when a number of mortgage payments have been missed and you have not sold the house on your own.
When your mortgage company forecloses on your house, they take your house and sell it at auction to the highest bidder. If your house does not sell at auction for the total amount you owe the bank for your mortgage, then the bank may have the option to go after you for the difference.
For example, let us pretend that you owe your mortgage company $100,000 for your home. You become behind on your mortgage payments and the bank decides to foreclose on your home. The bank then sells your house at auction to the highest bidder for $65,000. This means that the bank was shorted $35,000 because of the foreclosure. In order to get the rest of their money, the bank can then sue you for the remaining $35,000 that they are owed.
This process of going after you for the mortgage and auction price difference is called a deficiency judgment. However, the bank may decide not to sue you and write off the remaining amount you owe. If the bank writes off this amount, the amount of canceled debt may be taxable to you.Alternatives to Foreclosure
Contact the Law Office of Camron Hoorfar, PC in order to stop your foreclosure and save your home. We may be able to help your family stay in your house using bankruptcy, debt negotiation, mortgage modifications, or short sales.Alternatives to Foreclosure
Contact the Law Office of Camron Hoorfar, PC in order to stop your foreclosure and save your home. We may be able to help your family stay in your house using bankruptcy, debt negotiation, mortgage modifications, or short sales.Frequently Asked Questions
What is a foreclosure?
A foreclosure occurs when a secured creditor, such as a mortgage company or a car lender, claims that a person is behind on their payments. A foreclosure allows the creditor to take back the item being financed and sell it at auction to the highest bidder. Once the item being financed, like a house or car, is sold at a foreclosure auction, generally the item is lost and there is no way for the person to get that item back.
What is the difference between a Missouri and Kansas foreclosure?
In Missouri, courts are not involved. All a creditor has to do for a Missouri foreclosure is publicize the foreclosure auction in a legal newspaper and mail a copy to the borrower. In Kansas, courts are involved. A creditor cannot foreclose on real estate unless they sue the borrower in court, prove to the Judge that the borrower was behind in their payments, and get approval from the Judge to sell the item at a foreclosure auction.
If I am facing a foreclosure, what are my options?
One option is to get caught back up. A creditor cannot foreclose on an item if the borrower is not behind in their monthly payments to the creditor. A second option is to get a loan modification from the creditor. A third option is to give the property back, possibly through a deed-in-lieu of foreclosure. A fourth option is to file for bankruptcy. A fifth option is to do nothing.
What is a loan modification?
A loan modification is when the borrower approaches a secured creditor, admits that they are behind in the monthly payments, and asks for the secured creditor to forgive or put the back-owed payments at the end of the loan. A borrower can also ask for a temporary reduction in payments and/or interest during the loan modification. However, a loan modification can be very difficult to get with secured creditors.
What is a deed-in-lieu of foreclosure?
A deed-in-lieu of foreclosure allows a borrower to give back the secured property, such as a home or other real estate, to the creditor without having to go through the foreclosure process. A creditor may like this option because they do not have to go through the foreclosure process to get the real estate back. A borrower may like this option because a creditor may allow a borrower some time to move out of the property before the creditor takes over.
How long will a foreclosure be on my credit?
Foreclosures can impact a borrower's credit for seven to ten years.
How does bankruptcy affect my foreclosure?
The answer to this question depends on the type of bankruptcy that is filed and if the foreclosure has already occurred. Generally, a Chapter 7 bankruptcy is used to get rid of a home, but also get rid of the debt. A Chapter 7 bankruptcy will not save a property from foreclosure. Generally, a Chapter 13 bankruptcy is used to save a home or other secured property. A Chapter 13 bankruptcy allows the borrower to make up the missed payments to the creditor over a certain time period, usually three to five years.