Stop Foreclosure in Santa Rosa

 

Facing Foreclosure? Don’t Panic, Take Charge!

How do you stop foreclosure in Santa Rosa, California? Foreclosure is losing your home if you cannot keep up with your mortgage payments. In Santa Rosa, like many places, different things can lead to this action. Knowing what these are can help you avoid it. Stopping foreclosure is crucial because losing your home is the worst. It is stressful and throws your life off track. Foreclosure can also hurt your credit score badly. That will make it harder for you to borrow money later. It will also take years to fix that score. Even worse, the bank might sue you if the sale does not cover your full loan. Plus, the forgiven debt from foreclosure could be taxed, meaning a huge tax bill. 

Quick Summary:

• Foreclosure in Santa Rosa, California can lead to losing your home, creating immense stress, and damaging your credit score.
• Chapter 13 bankruptcy can help stop foreclosure. It gives you three to five years to catch up on missed mortgage payments and keep your home. A judge approves a plan to pay back what you owe, helping you get back on track financially.
• Filing for Chapter 13 puts a hold on foreclosure for a while, giving you time to figure things out. But there are rules about who can file and what you can do,
• Besides Chapter 13, there are other ways to avoid foreclosure. You could pay everything back at once, change your loan terms, temporarily stop payments, sell your house, or even get a reverse mortgage if you are older.

How Does Foreclosure Play Out?

Facing foreclosure can be scary, so we break down the key steps below:

1. Notice of Default:

• If you miss mortgage payments, your lender might file a “Notice of Default” with the county. That means your lender is officially starting the foreclosure process.
• You will get a copy by mail and have 90 days to “catch up” on missed payments.
• Beware of scammers who target people in this situation, so be careful who you trust for help.

1. Notice of Sale: 

• If you cannot catch up on missed payments, your lender will file a “Notice of Sale.” That means your house will be auctioned in 21 days.
• You will get the notice by mail or see it in the newspaper. It will also be posted on your house and at the courthouse.
• You have five days before the auction to catch up again and stop the sale.

1. The Auction:

• At least 21 days after the Notice of Sale, your house gets auctioned.
• The highest bidder wins and pays immediately with cash or a cashier’s check.
• The lender usually bids to cover what you owe them.
• If no one bids higher, the lender gets your house.

Chapter 13 Bankruptcy as a Solution to Foreclosure

Chapter 13 bankruptcy could be an option if you are struggling with your mortgage or facing foreclosure. It lets you pause the foreclosure and catch up on missed payments over time through a court-approved plan. The plan usually takes three to five years to complete.That might even mean eliminating some extra debt attached to your house, although that is less common nowadays. However, it only works if your house is worth less than you owe. Some courts have special programs to help you work things out with your lender.Sometimes, people have trouble making their mortgage payments. To help them avoid losing their homes, mortgage companies offer special programs called “loss mitigation options.” These programs give borrowers a chance to catch up on missed payments or adjust their loan terms to make them more affordable.Mortgage companies must review applications for these programs within a month. There are also special government loans available with lower interest rates. If you’re struggling with your mortgage, talk to a local housing counselor to learn more about your options.Note that there are also a few catches on filing Chapter 13: 

• You cannot file again if you have filed for bankruptcy recently (ie, in the past two years).
• If you already filed for bankruptcy and the judge said it was okay for the foreclosure to keep going, then Chapter 13 will not work this time.

These rules ensure people do not use bankruptcy repeatedly to avoid foreclosure. You can keep your home if you complete your Chapter 13 plan and catch up on payments.

What Alternatives Exist to Prevent Foreclosure?

There are some other options available to stop foreclosure:

1. Get Back on Track with Reinstatement:

• If you can afford to, paying the full amount owed can prevent foreclosure. Ask your lender for a “reinstatement quote” to see what you need to pay.

1. Talk to Your Lender:

• If you can’t pay in full, contact your loan servicer (the company that collects your payments). They might have options like:
• Lowering your payments for a while (forbearance)
• Changing your loan terms (loan modification)
• Waiving late fees could help you catch up faster

1. Selling Your Home:

• If you have equity (the value of your home minus what you owe), selling might give you some money to move elsewhere.

1. Reverse Mortgages (for Seniors):

• If you are 62 or older, a reverse mortgage lets you borrow against your home’s value to get cash.

Why Do I Need a Bankruptcy Attorney in Santa Rosa, CA?

Choosing the right bankruptcy attorney is crucial. Here are reasons why you should choose Embolden Law PC:

• Experienced Team: We have been solving legal problems since 2000, so you know you are in good hands.
• Client-centered: we listen carefully to your worries and what you want to achieve in your case. We will work with you closely to create a plan to get the best results possible.
• Fast Results: We work hard to get you the best outcome quickly and efficiently.
• Preventative Advice: We can help you avoid future problems with professional guidance.
• Trial and Appeal Ready: We have the experience to fight for you in court and beyond.

Our law firm presents a compelling choice for individuals and businesses seeking experienced, comprehensive, and client-focused legal representation in the Santa Rosa, CA, area and beyond.

Call our Bankruptcy Attorney in Santa Rosa, CA, Now!

Are you stuck with endless bills and creditor calls? You are not alone. Dealing with mountains of debt can be scary and stressful. But the good news is that there are many ways to stop foreclosure! Other than filing for Chapter 13 bankruptcy, you can also resort to loan modification, forbearance agreement, short sale, and many more!Our experienced Santa Rosa bankruptcy lawyers have decades of helping individuals and businesses just like you. Whether you are filing for bankruptcy or facing a lawsuit, we are here to guide you through the legal process quickly and efficiently. Our goal is to get you the best possible outcome to put your financial worries behind you.Other than the wage earner’s plan, we also handle liquidation plans and reorganization bankruptcy. Let us work together and stop foreclosure! Get a free phone call with our attorneys today.