Although it is should be a last option to stop Virginia home foreclosure, bankruptcy is a legal option you may use.
The thought of losing your home to foreclosure is naturally frightening. If you are already behind on your mortgage payments, you may wonder what options are still available. To stop Virginia home foreclosure, bankruptcy is one legal option that is available to you. Bankruptcy is not a step that should be taken lightly, though, so it is important to make sure you are well informed about this option before taking this step.
Foreclosure occurs when you fall behind on your mortgage payments. Your lender may then use a legal process to take possession of the property and then sell it in order to collect on the outstanding debt. In most cases, your lender will advertise the auction date for your home. Once that happens, you will not be able to get the property back as there is no right of redemption in Virginia.
Research your home value here to see if a short sale is a better option.
When you file a bankruptcy case with the court, an automatic stay will be granted that will force all creditors to cease any attempts to take your home through foreclosure. Generally, foreclosure can be stopped even up to the day before the sale is scheduled. After you file a bankruptcy case, your case will be assigned to a trustee who is appointed by the court. You will need to submit documentation regarding your expenses, income and assets.
After reviewing your financial situation, the trustee will work with you to design a debt payment plan that will allow you to pay back your outstanding debts over a period of time. That period of time typically ranges from three to five years. One of the benefits of this option is that it will allow you to catch up on your delinquent mortgage payments during the given time. It is important to understand that you must make your payments as scheduled according to the new payment plan. If you fail to make the agreed-upon payments, you would be at risk of losing your home.
If you are considering a bankruptcy to stop Virginia home foreclosure, you should also be aware of the negative impact it can have on your credit profile. A bankruptcy can still lower your credit score and make it difficult for you to obtain loans in the future. In order to be eligible to use bankruptcy to prevent the foreclosure of your home, you must meet the following requirements:
- Your name must be on the deed to the property
- The property must not have been already sold through foreclosure
- You must not have previously filed a bankruptcy
If you face foreclosure, there are legal solutions available that can help you save your home. To stop Virginia home foreclosure, bankruptcy is one legal solution that can help you stay in your home and get your finances in order. Contact a bankruptcy attorney to find out if this is the best option for you. If you decide that selling your home in pre-foreclosure or through a short sale is a better option, go to Reply! to find a professional in your area who can help you.