Memphis Foreclosure Attorneys

Stop Foreclosure Through Bankruptcy

Memphis Foreclosure Attorneys

If you’re facing foreclosure, you might be willing to try anything. But debt relief services and refinancing can fall through. Only bankruptcy has the power of federal law behind it to stop foreclosure immediately.

Our Memphis bankruptcy lawyers have helped thousands of Memphis residents save their homes and get out of debt, and we can help you, too.

Protecting your home from foreclosure can seem like an impossible process and leave you feeling helpless. But the Chapter 13 bankruptcy process is simple and stops the foreclosure in its tracks.

Chapter 13 bankruptcy is a debt reorganization plan. Your debts — including your past-due mortgage payments — get lumped into an affordable 3-5 year repayment plan. The plan takes your unique situation into account, so you can actually afford the payments.

With this simple setup, you can keep your home and get out of debt. And when the bankruptcy ends, you’ll be current on your mortgage. It’s a powerful and life-changing tool.

Find a Memphis Foreclosure Attorney

Our attorneys have stopped hundreds of foreclosures in Memphis.

If you’re facing foreclosure, don’t wait. Let us help. Darrell Castle & Associates Memphis bankruptcy lawyers offer a free consultation to let you know your options.

Call us today, or contact us online to get started, no strings attached.

Common Myths About Foreclosures

Unfortunately, some people who get laid off from their jobs have a difficult time keeping up with their mortgage payments. Missing too many mortgage payments can result in the bank foreclosing your home. Here are some common myths about foreclosures that you shouldn’t believe.

  • The foreclosure process begins after one missed mortgage payment. Although you ideally don’t want to miss any mortgage payments, you will not lose your home for one missed payment. Most of the time, a lender will not start the foreclosure process until you have missed three mortgage payments.
  • Refinancing can help prevent foreclosure. This is not true either. If your home is in foreclosure, do not count on the bank to offer refinancing. In the majority of cases, banks do not refinance homes going through foreclosure.
  • Once the foreclosure process begins, you can’t stop it. Many homeowners assume that once their bank has decided to foreclose their home, there is nothing they can do about it. Fortunately, this is not the case. In fact, it is possible to stop a foreclosure all the way up to the public option. 
  • Only financially irresponsible people face foreclosure. Sadly, there is still such a stigma around people who receive foreclosure notices. Others may assume that they are bad with their money and spend it on things they do not need. However, the majority of people who face foreclosure are hardworking and responsible people. They may have just lost their job and struggled to keep up with their mortgage payments.
  • You can’t purchase another home after a foreclosure. This is a common fear of people facing foreclosures. They may worry that they will never be able to get approved for a mortgage loan again. Fortunately, there is some good news. Although your credit rating will go down after foreclosing on your home, you can rebuild it over time. Once you achieve a healthy credit score again, you may be able to qualify for a mortgage loan.
  • You do not need to hire a lawyer. If you want to try to save your home through mediation, you definitely want to have an experienced lawyer on your side. Mediation can be intimidating and the bank will have their own lawyers. Your lawyer can present your case and fight hard to help you save your home. You will feel much more confident going into mediation with legal assistance.

How Foreclosures Affect Your Finances: 5 Common Questions Answered

Foreclosures are still happening all over the United States, and many people are wondering how foreclosures affect their finances in the long run. Luckily, there’s plenty of financial advice available on this topic, some of which can be helpful as you navigate your personal situation. Here are five questions that come up often when it comes to how foreclosures affect your finances, and the answers you need to hear.

Do I Have to Pay Back My Reverse Mortgage?

If you’ve fallen behind on your mortgage payments, you might be wondering if you have to pay back your reverse mortgage. The answer is, it depends. If you can’t afford to make the payments and don’t have any other way to bring your loan current, then the lender may foreclose on your home. However, if you’re able to bring your loan current and keep up with the payments, then you won’t have to pay back the reverse mortgage.

What Happens if You Owe More than Your Home Is Worth?

When your home is worth less than you owe on it, it’s called being underwater. You can still sell the home, but you’ll have to bring cash to the table to make up the difference. If you’re not able to do that, you may have to consider a short sale. If you can’t afford your mortgage payment, the first thing you should do is contact your lender. They may be able to work with you to create a new payment plan. If that’s not an option, you may be able to sell your home through a short sale or deed in lieu of foreclosure. In either case, the bank will take over ownership of your property and will use the proceeds from selling it to pay off as much debt as possible. Any money left over will go back to you. For example, if you owed $200,000 on your house and it sold for $150,000, any money left over would go back to you minus closing costs and legal fees associated with doing a short sale or deed in lieu of foreclosure. The same would apply if there was no equity left at all after accounting for closing costs and fees; any money left over would go back to you as well.

When Can I Get My Money Back from a Foreclosure Sale?

The answer to this question depends on the state you live in and the type of foreclosure your home is going through. In most cases, you’ll have to wait until the foreclosure sale is complete before you can get your money back. The best way to find out how foreclosures work in your state is to contact a local housing counselor or an attorney.  You may also want to speak with your lender about getting access to funds that are left over after the foreclosure process is completed.

How Long Does It Take for the Foreclosure Process to End?

The foreclosure process can take a few months to over a year, depending on the state you live in and the type of foreclosure your lender pursues. During this time, you’ll continue to accrue interest and late fees on your mortgage, which will increase the amount you owe. You may also be responsible for property taxes and homeowners insurance. If you have other debts secured by your home, such as a home equity loan or line of credit, you’ll still be responsible for repaying those even after your home is foreclosed. Your credit score will also take a hit, which can make it harder to get approved for new loans in the future.

Will Foreclosure Hurt My Credit Score?

A foreclosure will likely hurt your credit score, but the drop in your score will depend on how good your credit was before the foreclosure and how long ago the foreclosure occurred. If you have other negative marks on your credit report, such as late payments, the foreclosure will have a smaller impact. The effect of a foreclosure on your credit score will also lessen over time.

Contact a foreclosure attorney today at Darrell Castle & Associates for help.