The most common problem homeowners call me about is how to save their home from foreclosure, whether its the mortgage company or the community association, after the court has set a date for the home to be sold at a foreclosure auction.
I cannot stress enough that homeowners should consult with an attorney the minute they are served with a foreclosure complaint, or even before then if they know they are in trouble and its just a matter of time. Many attorneys offer affordable monthly payment plans to assist in defending the foreclosure and reorganizing the debt for repayment, but you need to consult with the attorney early. There are options early in the process. If you wait until the sale has been set you limit your options.
I am also a big fan of the legal clinics at the law schools. The legal clinics provide low cost or free legal representation to members of the community as part of their training for law students. The programs are supervised by licensed attorneys.
So what do you do if you find yourself with a pending sale date on your home?
Consider a Chapter 13 bankruptcy, which will allow you to participate in a mortgage modification mediation program and restructure your mortgage. While many people have tried mortgage modifications on their own, your chances of success are greater when you enter a program through the federal courts. Don't walk away from your home without at least discussing this option with a bankruptcy attorney. In some cases a Chapter 7 bankruptcy can also help if your home is underwater and you can benefit from procedures to strip away excess principal.
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