If you are facing a foreclosure in South Jersey, you are not alone. People are still struggling to pay mortgage payments and keep their home. Even a small financial crisis such as a temporary reduction in income or a minor medical procedure can cause you to fall behind on your mortgage payments. Once you fall behind on the payments, the mortgage company will add late fees and other costs that drive the amount to bring the mortgage current much higher than the actual payments you could not make. At this point, many people give up and the mortgage company files a foreclosure.
When Will a Mortgage Lender File the Foreclosure?
It depends on the mortgage company. Some mortgage companies will begin the foreclosure process when an owner is three to six months behind in payments but it is purely up to the mortgage lender when to file the foreclosure. A mortgage lender could continue collection efforts for a year or more before filing foreclosure. The truth is that the lender can file a foreclosure as soon as you fall behind on your mortgage payments so you cannot assume that a lender will wait any specific length of time to file a foreclosure. Most lenders pursue other collection efforts for several months before filing foreclosure because foreclosures can be expensive and time-consuming. Furthermore, the lender often has to sell the home after the foreclosure is completed thereby incurring costs in marketing and selling the home.
Once the foreclosure is filed, you will be served with a copy of the foreclosure complaint. If you fail to respond to the complaint within the time set forth, the mortgage lender will proceed to request a default judgment and set a foreclosure sales date. Filing a bankruptcy stops foreclosure even if the sales date has been scheduled by the court. You can file a bankruptcy case at any point during the foreclosure process and stop the foreclosure up and until the property is sold. Once the property is sold, filing a bankruptcy will not void the foreclosure sale.
Therefore, it is very important that contact our office as soon as possible if you are falling behind on your mortgage payments. Even though we can file a bankruptcy to stop a foreclosure, it is better to review your options well in advance of facing a foreclosure sale so that you have more time to take steps that are in your best interest to resolve your debt rather than rushing through an emergency bankruptcy just to stop a foreclosure.
Contact an Experienced Mount Holly Bankruptcy Attorney
Personal Approach, Professional Service, Affordable Payment Plans
The Law Office of Travis J. Richards, LLC is a full-service Mount Holly bankruptcy law firm focused on Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, debt consolidation, credit repair, tax liens, student loans and foreclosure. We represent clients in Burlington County and throughout South Jersey.
If you are experiencing financial problems due to debt, contact our office at 609-267-5297 to schedule your free consultation to discuss bankruptcy and non-bankruptcy alternatives. You may also use our convenient online contact form and one of our friendly, professional staff members will contact you to answer your bankruptcy questions and/or schedule a free consultation with Travis J. Richards.
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