If you skip one mortgage payment, it might start a chain reaction that is difficult to halt. Late fines and additional charges will be added to the amount owed, raising the total amount owed. If you miss several payments, your mortgage company will send you default notices and, eventually, foreclosure proceedings will be initiated.
You may be aware that declaring bankruptcy is one option to put a halt to this cycle of events. “When is it acceptable to contact the best bankruptcy attorney in Fontana CA?” is the question. Keep reading for more information and then contact Law Offices of Terrence Fantauzzi at (909) 552-1238 for a free legal consultation.
It is wise to take the decision to file for bankruptcy seriously
Bankruptcy is a difficult decision to make. Even when facing foreclosure, people would typically put off considering bankruptcy until the final possible moment. They may be hoping to work out a deal with their lender, such as a loan modification or forbearance. While such choices are absolutely available, declaring bankruptcy before a foreclosure complaint is filed will almost surely save you money in the long run and does not rule out other possibilities.
Understanding the process of foreclosure with the help of the best bankruptcy attorney in Fontana CA
A mortgage lender is not allowed to start the foreclosure process until a homeowner has been in default for 120 days, with a few exceptions. The homeowner will get a breach notice describing the default and the lender’s decision to accelerate the debt during this period.
A mortgage servicer is obligated by California law to contact a borrower by phone or in person 30 days before issuing a notice of default. The goal is to examine the borrower’s financial status and look into options other than foreclosure.
When the notice of default is registered at the county record office, the nonjudicial foreclosure procedure begins. The notice informs the borrower that he or she has three months to correct the default. A notice of sale will be filed if the borrower does not remedy the default. The property address, as well as the time and place of the sale, will be included in this notification. After the three-month term has expired, the foreclosure sale must be filed at least 20 days later.
When is the best time to file for bankruptcy?
Using the following timetable as an example, you might skip up to four mortgage payments before facing foreclosure. In the majority of circumstances, the lender will not begin the procedure right away. Assume you are five months late on your payments when the servicer reaches you. After then, a notice of default is filed, and three months pass.
A sheriff sale is set in one month since you have not remedied the total debt. You are nine months late on your mortgage at the time of the transaction. If your monthly payment is $2,800, your total balance is $25,200, plus any additional fees, attorney fees, and interest.
The best bankruptcy attorney in Fontana CA could help you save your home
You might be able to save your house if you file for Chapter 13. When you file for bankruptcy, a legal barrier is put in place that prevents creditors from taking collecting operations against you. As a result, the automatic stay prevents the foreclosure and sheriff’s sale from taking place.
n Chapter 13, your debt is restructured, and you will be able to pay your mortgage lender the money you owe over a period of sixty months. In the scenario above, your Chapter 13 payment would be at least $420 each month. Given your other debts, income, and assets, this number might be greater. Our Chapter 13 bankruptcy lawyers in California will go through the Chapter 13 computations with you in detail. Call Law Offices of Terrence Fantauzzi at (909) 552-1238 today to get started.