Stopping a foreclosure sale
If you don’t stop the foreclosure sale you will be moving out of the home in the next two to four week. You still can be sued by the mortgage company if the home sells for less than what is owed, plus receive a 1099 ‘you will have to claim on you income taxes as income for the interest the mortgage company lost’.
It is at this point the mortgage company could not come to a work able agreement to help catch you up on mortgage payments that you have fallen behind on. Their plan are usually paid back over the next year making it imposable for you to afford.
Filing a chapter 13 bankruptcy will force the mortgage company to accept a five year plan. Which this in turn will make the payments made to them more affordable. While helping you with the mortgage the credit cards can be put in the plan, same with them they will only receive money that you can afford to pay.
You have all the way up to the last day before the sale to file the bankruptcy but it is all-ways better not to wait till the last day. The more time your attorney has will allow him more time to notice the attorneys doing the sale and more info to help you know what your payment will be.
Please fill out our free evaluation form to determine if bankruptcy is right for you.
