Nov 9, 2022 • Steve C. Taylor, Esq.
Foreclosing on the American Dream
“There’s no better place like home.” “Home Sweet Home.” “Home is where the heart is.” “Home is not a place… it’s a feeling.” “Home is the starting place of love, hope and dreams.” “Home is where our story begins…”
There are many sayings about home and with good reason. Homeownership is a fundamental element of the American Dream. Sadly, millions of families across America are currently facing the real possibility of losing their homes, their piece of the American Dream, through foreclosure.
How to Stop a Foreclosure in Virginia Beach and the Surrounding Hampton Roads Area
If you find yourself in this unhappy situation, the filing for Chapter 13 bankruptcy is the best way to stop the repossession and foreclosure on your home. As soon as your bankruptcy has been filed, the court will issue an “automatic stay” directing all creditors to immediately cease any, and all, collection activity. This means, the bank or mortgage company cannot take your home. Even if the lender has already begun foreclosure proceedings against you, they cannot continue.
Chapter 13 bankruptcy enables you to reduce and restructure your debt. Rather than continuing your current frantic bill payment situation, you will make ONE manageable monthly payment to a court-appointed trustee for 3 to 5 years. Chapter 13 allows you to keep your home, your car, and the life you have worked so hard to build while eliminating and reorganizing your debts.
What does Foreclosure mean?
Most people do not have the ready cash available to buy a home outright. Instead, they must borrow the necessary funds from a bank or another lender and in return secure the loan through the signing of a deed of trust or mortgage and the promise to make prompt monthly repayments. It is the terms of the deed of trust or mortgage that allow your creditor to acquire the property if you default on the loan.
Foreclosure refers to the legal process that a creditor uses to take over the ownership and sell the mortgaged real property.
Understanding the Process
The foreclosure process varies from state to state. In some states the laws allow for what is termed as a “non-judicial” foreclosure. This process allows the lender to bypass the court and begin foreclosing on your home through an alternative process.
Other states have laws that require a “judicial” foreclosure process. Under this process, the lender must take you to court to get an order from the judge before they can foreclose your home.
Either way, the bank or mortgage company can legally take your home and sell it.
In Virginia Beach and the surrounding Hampton Roads area, the predominant type of foreclosure process is “non-judicial”.
Avoid falling for Foreclosure scams and schemes
If you have found yourself to be among the millions of Americans hoping to stop a bank or mortgage company from taking your home, then you have undoubtably also researched alternative bankruptcy options. Many companies pretend to be able to help by offering a quick and easy plan with no guarantee of success or long-term benefits. While others will actually rob you blind. Con artists run rampant across the country, each trying to profit from hardworking people who just want to save their home.
Avoid scams and schemes by being cautious of companies that claim to be:
- “Mortgage modification” middlemen
- Foreclosure “rescue specialists”
- “Debt settlement” companies
- Debt “doctors”
What is Deed in Lieu?
A deed of in lieu is a legal document which transfers title back to your lender in return for relief from your mortgage debt. This allows you to stop foreclosure, but you must also give up your home. Additionally, you will lose any equity that you have managed to build up in the property.
Pre-foreclosure refers to the stage in the process in which a lender started but has not finished proceedings. It is still possible to stop the bank or mortgage company from taking your home and saving it even if you have reached this point.
At The Alliance Legal Group, PLLC, we believe that no one should have the ability to take away YOUR piece of the American dream. This belief is the driving force of why we have helped thousands of Virginia Beach, Norfolk, Chesapeake, Portsmouth, Suffolk, Newport News and Hampton residents file a Chapter 13 bankruptcy to stop their banks or mortgage companies from foreclosing on them.
Call us today at (757) 482-5705 to schedule a Bankruptcy Consultation with an experienced Alliance Legal Group attorney.
Let us show you how the bankruptcy laws could save your home.
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