Individuals who are facing foreclosure are often afraid of being homeless. people who can’t afford their monthly mortgage payments are in this situation due to financial hardship. Sometimes it can be due to a divorce, medical reason, or loss of employment.
Individuals are often surprised when their bank refuses to accept their mortgage payments or work with them. Speaking with a Staten Island foreclosure lawyer is the first step that individuals should take when served with foreclosure papers. This article will explain the Staten Island foreclosure process and different options available for people facing foreclosure in Staten Island.
The Foreclosure Process in Staten Island
Unfortunately, banks don’t care why people fall behind on their mortgage payments. Lenders want to get paid. Foreclosure can be scary. It may mean that the individual has simply fallen behind a few months and is in arrears and the bank is refusing to accept partial payments or it can mean the individual hasn’t paid their mortgage in years. Usually, when a person’s account goes to foreclosure it gets sent to a law firm. The foreclosure law firm will send a large foreclosure packet to the individual and file it with the Foreclosure Court.
Individuals served with foreclosure papers should not throw them out. Individuals should act immediately to ensure they don’t lose any options available to them. The initial foreclosure action starts with a summons and complaint. Individuals only have a certain time to answer these papers and should seek help from a Staten Island foreclosure attorney as soon as possible. Individuals should understand they usually have some time to take some type of action before their home is sold off. However, individuals who receive a summons and complaint need to act quickly to ensure they take the proper steps to protect their homes. Typically the foreclosure process takes about two years to complete.
What Foreclosure Options Are Available to Individuals
Individuals facing foreclosure have a few options:
- Respond to the Summons and Complaint– individuals facing foreclosure can go to court and defend the action. To do this the individual will need to answer the summons and complaint. Individuals should speak with a foreclosure lawyer if they plan to defend the action.
- Negotiate with the lender – Individuals who are served with lawsuit papers can try to negotiate with the lender. This may include calling the lender directly and asking if they would accept a down payment. If this doesn’t work the individual may attend conferences at the court to try to enter into a loan modification.
- File Bankruptcy to Stop a Foreclosure– The Next option that individuals have is to stop the foreclosure by using the bankruptcy process.
- Walking away from the home– Individuals that can’t afford their mortgage payments can do nothing and stay in the home until the bank forecloses and takes the home back.
How Can Bankruptcy Help If a Home is in Foreclosure
Individuals facing foreclosure can file bankruptcy to help them. Filing bankruptcy can stop a foreclosure sale the day of.
Chapter 7 bankruptcy to Stop Foreclosure
In Chapter 7, bankruptcy individuals can stop the sale of their home immediately once the case is filed. A chapter 7 bankruptcy can be a good tool for individuals who have little or no equity in their homes. In Chapter 7 bankruptcy, individuals wipe out their debt leaving them with more money to pay their mortgage payments.
Individuals who file a Chapter 7 bankruptcy in Staten Island to stop a foreclosure sale, can apply for a loan modification through the Bankruptcy Court. When individuals use the Bankruptcy Court to apply for a loan modification it often leads to better results. Bankruptcy judges oversee the process and ensure that the bank is working with the individual.
Individuals who can’t afford their mortgage payments and want to walk away from their home can wipe out their mortgage debt with a Chapter 7 bankruptcy and walk away from their home. When this happens the lender can no longer go after the individual for the deficiency amount. The deficiency amount is the amount left over after the home is sold at a foreclosure auction.
Chapter 13 Bankruptcy to Stop a Foreclosure in Staten Island
Chapter 13 bankruptcy can also stop the foreclosure sale of a home the day of. In Chapter 13 bankruptcy the filer enters into a 3-5 year plan to pay their debts back. Individuals with high incomes and a lot of equity in their property can use the Chapter 13 bankruptcy process to save their homes. If the individual can pay back their arrears through their plan the bank must accept their payment.
In a Chapter 13 bankruptcy, individuals can pay back the arrears they owe on their mortgage as long as they can afford to pay the arrears and keep up with their monthly mortgage payments. In addition to such, individuals can also apply for a loan modification. Chapter 13 bankruptcy allows individuals to restructure their debt and catch up on their payments.
What If What is Owed on the Mortgage is More than the Value of the Home?
In some cases, individuals may owe more than their home is worth. When this happens it may not be worth saving a home from foreclosure. Individuals who have taken out second mortgages and home equity lines of credit against their home may find themselves in this situation.
Individuals who find that their home is not worth as much as their loan should think about whether or not they want to keep their home. If they don’t, they can file bankruptcy and walk away from the home. If they decide they want to keep their home bankruptcy can provide other foreclosure options. Individuals should speak with a bankruptcy lawyer to understand what options are available to them.
Speak With a Staten Island Foreclosure Lawyer
Individuals facing foreclosure should speak with a Staten Island foreclosure lawyer immediately. A Staten Island foreclosure lawyer can ensure that the individual reviews and understands all of their options. Individuals facing foreclosure should understand that time is of the essence and they need to act quickly to ensure they don’t lose out on options available to them.
Karra L. Kingston Esq. has helped many individuals save their homes from foreclosure. If you are worried about losing your home and your lender is not working with you give us a call today to see what options are available to you. You can call us at (973)-979-9078 or fill out a form online.