The short answer is yes.
Sometimes, as a last resort, homeowners in Tennessee have to file bankruptcy to stop foreclosure and save their homes.
Why Homeowners May Need to File Bankruptcy to Stop Foreclosure
Life is full of challenges and unexpected things happen that can result in the loss of a home. This can be devastating especially when you have a sizable amount of equity in that home. It is not uncommon to see people who have been homeowners for more than 10 years suddenly find themselves in situations where they are faced with a foreclosure notice from the mortgage company and potential loss of their homes. Loss of Employment, Chronic Illness and other unforeseen occurrences can mean that a homeowner misses mortgage payments. And before you can blink, the bank has sent a notice of foreclosure.
Don’t despair! There’s no need to lose your entire investment in your home. The good news is that you can save your home and stop foreclosure by filing bankruptcy.
Here are some reasons why filing bankruptcy to stop a foreclosure might be necessary:
Filing Bankruptcy is the Only Option or Last Resort to Stop Foreclosure
In some cases, a homeowner has already tried unsuccessfully to negotiate or reach a resolution with the mortgage company. There might even be a loan modification application that was denied at the last minute. In such circumstances, in order to keep your house, filing Chapter 13 Bankruptcy a.k.a Wage Earner, might be a homeowner’s only option or last resort to stop foreclosure.
After you Stop Foreclosure, Bankruptcy Gives Opportunity to Pursue Loan Modification
Filing a Chapter 13 Bankruptcy gives you time to pursue other alternatives. One of such options is loan modification. While a Chapter 13 bankruptcy is pending, you can complete a loan modification application with the mortgage company. If it is approved, you would have succeeded on two fronts:
- Stop Foreclosure on your home
- Lower your monthly mortgage payment
Automatic Stay Provision of Bankruptcy Code Can Help Stop Foreclosure
Under the United States Bankruptcy Code, there is an automatic stay provision. It prevents creditors, including mortgage companies from taking any action against your property once you file bankruptcy. The stay is “automatic,” i.e. it is effective immediately you file bankruptcy.
Contact a Memphis Bankruptcy Lawyer to Stop Foreclosure
If you are a homeowner who is behind on mortgage payments, you don’t have to lose your home.
Contact Salu & Salu Law Firm and speak with our experienced Memphis Bankruptcy Lawyer to stop foreclosure on your home. We offer free consultation. Call us today at 901-577-0700 or 1-888-560-6690 or use the contact form below.