Taking the Stress Out of Foreclosure

Foreclosure could be a stressful situation if you have no other place to go – or it could be a blessing if your house is riddled with problems. Either way, it is a very stressful time, as you have to find other living accommodations or try to raise the money to get the house out of foreclosure. You could take some of the stress out of foreclosure by taking a few steps.

Contact a Foreclosure and Bankruptcy Attorney

A foreclosure and bankruptcy attorney will be able to advise you of the best path to take in your situation. Additionally, the attorney will keep you advised of court hearings and the auction date. The attorney may even be able to put off the auction date, depending on your circumstances. Because the attorney deals with the entire process for you, that is one thing off your mind. You just need to calendar court dates and show up for the dates the attorney needs you to. Some court hearings are administrative and you may not have to go to those.

Be sure to explain why you are behind on your house payments to the attorney. In some cases, it may not be entirely your faults, such as a major layoff at work or a serious illness in your immediate family that took away some of your income. In some cases, the attorney may be able to save your home for you.

Thinking Long Term and Reducing Other Financial Stress

If you find yourself in foreclosure, take a good look at your finances and the condition of your home, including whether you are over 50 percent upside down on the home. If the home is unlikely to get into equity in the next few years or the home needs a lot of work to bring it up to par, you may be better off getting out of the home. You could sell it as a short sale if the bank will agree.

If you prefer to stay in your home, look at your other debts and spending habits to see where you might be able to cut some debt or spending out. That extra money could be used to put on your home to bail yourself out of foreclosure. For example, if you are paying over $150 for cable, consider cutting it down to the minimum of channels. Check other cell phone companies for better rates. If you are getting a $5 coffee from Starbucks every day, you might have to cut that out. That coffee costs you $200 for 20 days. If you cut the coffee out, drop the cable to $100 per month and find a cell phone plan that is $50 cheaper, that is $400 per month you could put toward the arrearages on your mortgage.

Know the Foreclosure Process

If you know and understand the foreclosure process, you will know what to expect, thus reducing some of the stress levels. A foreclosure takes time – the bank cannot take your home overnight. If you want to stay in your home but need time to work out a loan modification or time to get enough funds to catch your payments up, a good foreclosure attorney knows how to stall the process to get you the time you need. One of the ways to stall a foreclosure is to file for bankruptcy. This has additional stress-relieving benefits. Once you file a bankruptcy, the “automatic stay” goes into place. This means that no creditor may continue trying to collect on past due bills. In Chapter 13 reorganization, you pay back some of your debt on a “plan.” You might be paying dimes on the dollar for some debt and some debt may get wiped out without paying on it. You do have to keep your house payments current during the foreclosure process, but the arrearages are included in the plan so you don’t have to pay it all back before you’re ready.

Contact Yardley Law

If you have received a foreclosure notice, contact Yardley Law to set up a consultation to learn of your rights and to find out the best way to handle your situation.

 

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