Are you at risk of losing your home because you are unable to pay your mortgage? Is the bank threatening you with foreclosure? Has a sale date already been set?
At John T. Turco & Associates in Omaha, we can help you avoid foreclosure by filing for bankruptcy protection. We can also help you understand your non-bankruptcy options for avoiding foreclosure.
Stopping the Foreclosure Sale by Filing Bankruptcy
If you are behind on your mortgage payments, your lender can have your property sold to repay the debt. In Nebraska, this is done through a non-judicial foreclosure sale. In Iowa, it is done through a sheriff’s sale. If your bank is moving forward with foreclosure, you will get notice of a sale date.
Foreclosure can be stopped by filing for bankruptcy as late as the day before your sale date. Once bankruptcy has been filed, the sale cannot move forward.
Both main types of bankruptcy have benefits when it comes to keeping your home. Chapter 13 bankruptcy allows you to catch up with late payments over the course of three to five years. Chapter 7 bankruptcy can eliminate other debts so you can focus on making your mortgage payments.
Understanding the Risks of Non-Bankruptcy Options
Bankruptcy is not the only way of avoiding foreclosure, but it may be the only option that gives you legal protection. You should be very careful when considering alternatives to bankruptcy.
Your mortgage company may be holding you off with promises that they will be willing to work out a deal with you, but until you have a workout deal in writing, nothing is binding. We get many clients who thought they had a deal and then learned that a foreclosure sale was scheduled. All of your efforts to work out a deal should be communicated by certified mail.
There are also companies, many of them out of state, that advertise that they will negotiate with your bank for you. Unfortunately, some of these companies are disreputable and take your money without delivering. None of these companies have the legal protections of bankruptcy on their side.
Our attorneys will be happy to advise you on all of your options to avoid foreclosure.
We can help. Contact us to speak to one of our experienced bankruptcy lawyers or to arrange a free initial consultation. If you cannot come to our Omaha offices, we can consult with you by telephone.