Can a Bankruptcy Attorney Save Your House

When facing bankruptcy, it can be challenging to imagine having any financial stability. It's easy to believe that a Folsom bankruptcy lawyer will mention your house during your interview, but it's not true. After all, there are many ways a bankruptcy lawyer might help you avoid losing your home in the first place. Here are a few of the ways how can a bankruptcy lawyer save your house

RELIEF FROM FORCED SALE

A bankruptcy attorney can file a relief from the forced sale of your home. That will cancel the foreclosure sale that was issued against you, and it will allow you to renegotiate with your lender so that you can keep your home and make payments for as long as possible. Successfully negotiating with your lender depends entirely on each case's specifics.

DEBT CONSOLIDATION

A bankruptcy lawyer can help negotiate with your lender to consolidate your debt. If you determine that the amount of money you owe on your mortgage is more than what the house is worth, consider asking for debt consolidation. That means that you will ask your lender to lower the loan balance and then take out a loan for the remaining balance of money owed. It will allow you to avoid foreclosure on your home, enabling you to avoid bankruptcy in general.

DESIGNING AN APPROPRIATE PAYMENT PLAN

Work with your lender to create a repayment plan that fits your budget. A bankruptcy lawyer will negotiate payments that fit within your budget and at a time frame that best works for you and the lender. If you have missed some of your previous mortgage payments, the first thing a bankruptcy lawyer will do is work with the lender to develop a new agreement that fits within your means.

Further, if you have already made several payments on your old mortgage, a bankruptcy lawyer will work with your lender to reduce the principal balance. That will keep you current with your monthly payments and make sure that you can make the minimum payment in full each month.

USE A DEED INSTEAD OF FORECLOSURE.

If the best option is to sell your home, a bankruptcy attorney will negotiate with the lender to get you what is called a Deed in Lieu of Foreclosure. That allows you to move from the property without losing any equity in the property and keep any equity you may have built up over years of payments.

Keep your property during bankruptcy.

Keeping the house is often a good idea when considering whether or not filing for bankruptcy protection is suitable for you. Even though certain laws in most states prohibit it, a lawyer can sometimes keep your property if you risk losing it to foreclosure. A bankruptcy lawyer will review your case to determine if there is a way for you to keep the house while still being able to file for bankruptcy protection.

If you are facing mortgage issues, a bankruptcy lawyer can help you stop foreclosure in its tracks. A bankruptcy lawyer can negotiate with your bank and credit card companies to restructure your borrowing to make it more manageable for you. A bankruptcy lawyer will also work with your lender and provide the legal means by which the foreclosure process can be stopped. Letting a bankruptcy lawyer guide you through these delicate negotiations is critical if you want to keep your home.