While many homeowners may not have considered it, bankruptcy can also be a useful tool in fighting a foreclosure. In a case where a homeowner may not be financially able to keep their home, a Chapter 7 can help to stave off a foreclosure sale, and allow the homeowner to surrender the property and owe nothing more.
A Chapter 13 bankruptcy can be a useful tool to fight a foreclosure where the homeowner wishes to keep their home. When a homeowner files for Chapter 13, what is known as an automatic stay comes into play and halts any foreclosure action, including an impending foreclosure sale. Through the Chapter 13 process, a homeowner is then able to catch up on missed payments, continue to work to potentially modify their loan, and also take care of any unsecured debts they may have. A Chapter 13 may also help a homeowner with a second mortgage as well.
Other options available to homeowners in foreclosure include a deed in lieu of foreclosure or a short sale. It is important to contact an experienced Queens foreclosure attorney, such as our office, if you are a homeowner faced with foreclosure so that you can be informed about all of your potential options and choose which best suits your unique needs and situation. Contact us today to learn more!