Foreclosure Defense lawyers Memphis TN
Many homeowners go through difficult financial times that causes them to fall behind in their mortgage payments. This can result in threats of foreclosures from their bank or mortgage company, and the institution may even begin foreclosure proceedings. When this happens, the homeowner may need to decide whether or not filing for bankruptcy is a workable option for them. If you are facing foreclosure and not sure what you should do, contact one of the foreclosure defense lawyers Memphis TN clients recommend from Darrell Castle & Associates for legal help.
If you have fallen behind in your mortgage payments, the first question you must ask yourself if you want to save your home. If you are only behind by a couple of months, contact your lender and see if they are willing to work with you. The foreclosure process is an expensive one for financial institutions and in many situations, they are willing to work with their customers. Some of the options they may offer include:
- The customer makes up the late payments.
- The mortgage holder will restructure the loan.
- The mortgage holder will issue a forbearance.
If you owe more than one or two months and foreclosure is looming or the process has already begun, then you will need to decide what options you have instead of letting the mortgage holder take your home. As a Memphis TN bankruptcy lawyer can explain, the impact a foreclosure has on your credit score and your ability to purchase a home in the future is quite serious. Foreclosure will lower your credit score by at least 200 to 300 points.
One option is a short sale, where the house sells for less than what it owed on the loan, but the mortgage holder agrees to accept that lesser amount. Another option is a “deed in lieu of foreclosure,” where the homeowner turns the property over to the mortgage holder and owes nothing.
A third option is filing for bankruptcy protection. When you are trying to save your home, then the best type of bankruptcy to file is Chapter 13. Unlike Chapter 7 bankruptcy where everything the person has is liquidated, Chapter 13 bankruptcy restructures the person’s debt, allowing them to save their home and get back on their financial feet again.
When your attorney files your bankruptcy petition, there is an automatic stay placed on all collection activity, stopping all debt collection, including any foreclosure proceedings. A trustee is appointed to your case and that trustee meets with all lenders and other creditors to create a payment plan that allows you to repay back your debt.
Contact Us for Legal Help
If you are facing foreclosure and unsure what to do, call Darrell Castle & Associates to schedule a free consultation with one of our foreclosure defense lawyers in Memphis TN. Don’t delay, call our office today