Below, I will discuss 3 possible options you may take if you have been served a foreclosure lawsuit. I would love the opportunity to discuss these in further detail with you. I am available until 8 PM every day but Sunday. I can be reached at 850-837-4878 in the Destin, Florida area. We also provide at toll free 866-587-3458 for clients calling from outside the local calling area. Finally, you can CONTACT US via email and we will then promptly contact you.
Option One: Foreclosure Defense
This strategy includes attacking any and all potential legal and procedural defects in the foreclosure suit against you. You have the right to force the mortgage company's lawyers to correct their paperwork. In most cases, this paperwork often fails to technically meet the statutory, contractual, or procedural requirements of the law. This typically allows you extra time to:
- Accumulate money to reinstate your mortgage
- Improve your finances so that you qualify to reorganize your debts via Chapter 13 bankruptcy
- Hire a realtor who can market your home to allow you to sell and recover much of the equity to allow you to get your life back together or complete a short-sale
- Save up more money required to relocate
Option One: Chapter 13 Bankruptcy
This may be an appropriate choice if you presently have adequate income to resume making the normal monthly payments to your lender PLUS pay the back payments and other associated late fees over a 5 year period. Another advantage with Chapter 13 is that if you also have unsecured debts (credit cards, medical bills, etc.), often a substantial portion of these debts may be discharged (avoided) in a bankruptcy plan. This is the case unless your disposable income is sufficient to allow you to repay the unsecured debts in full.
Option Three: Chapter 7 Bankruptcy
This may be an appropriate choice if you have a high amount of unsecured debt (credit cards, medical bills, etc.) or you have potential liability exposure for deficiency judgments related to owning multiple investment properties which are going into foreclosure.
