Avoiding Foreclosure In The Orlando Area

In some cases, bankruptcy can be used to help prevent foreclosure. In other cases, it cannot. If you are considering bankruptcy and fear that your home may be in danger of foreclosure, or if you need an attorney to help you understand your options with foreclosure and bankruptcy simultaneously, let us at Lewis & Monroe, PLLC, help.

Our attorneys hve more than 30 years of combined experience in bankruptcy law. James Monroe is certified in bankruptcy law by the American Board of Certification. Cynthia Lewis is a certified public accountant.

What If You Receive A Foreclosure Notice?

If you have received a foreclosure Summons and Complaint notifying you that your house is in foreclosure, you may be able to stop the process if you act quickly. Although you are not allowed to restructure the terms of your mortgage, you can ask the bank for leniency and time to catch up on your back payments, also known as "arrears."

The bank would prefer not to foreclose on your house, but it needs a reason to believe you will make your mortgage payments. If all your other debts are discharged or consolidated through bankruptcy, then the bank has a reason to believe you will be able to make the payments. The filing of a bankruptcy can improve your debt position, making it easier to make timely payments.

Halting Foreclosure With Chapter 7 Bankruptcy

In Chapter 7 bankruptcy, most of your unsecured debts are forgiven. A mortgage, however, is a secured debt. While the underlying debt on a house or real property is discharged or forgiven, the lien remains on the property and can still be foreclosed on by the bank or lending institution. Foreclosure allows the bank or lending institution to take back title to the property. If the house or real property is surrendered in a Chapter 7 bankruptcy, all of your remaining debt owed on the mortgage will be discharged, even if the value of the house is less than the value of the debt.

Avoiding Foreclosure With Chapter 13 Bankruptcy

If you are in foreclosure, filing for Chapter 13 bankruptcy may help you catch up on your arrearages and reinstate your mortgage. Even if you have already been served a Summons and Complaint, you can file for Chapter 13 bankruptcy to stop foreclosure at any time before the court auction to sell your house takes place.

If you have more than one mortgage, a second mortgage may be stripped off a home if the amount owed on the first mortgage exceeds the value of the home. The arrearages of a first mortgage may be caught up on during the three- to five-year period of the Plan of Reorganization. Mortgages can sometimes be altered by the mediation program instituted by the Bankruptcy Court. This may result in lower monthly payments or sometimes a reduction in the principal amount owed.

In these times more than any other since the Great Depression, Americans are being turned out of their homes. Most foreclosures are the result of economic woes and predatory lending - not fiscal irresponsibility. If you are facing foreclosure and bankruptcy, we can help you through it:

Contact An Orlando Attorney Skilled In Foreclosure Defense

Call 407-917-4147 or contact us online to schedule an appointment for a free initial office consultation with a lawyer from our office to discuss your foreclosure or repossessions bankruptcy.

The hiring of a lawyer is an important decision that should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and experience.

We are a debt relief agency. We counsel clients according to federal bankruptcy code.