South Atlanta Bankruptcy Blog
If you are one of the millions of Americans struggling with insurmountable debt and financial stability, then you have come to the right place for help. South Atlanta Bankruptcy's attorneys Gina Karrh and H. Brooks Cotten will be using this blog to provide information about bankruptcy. Don't hesitate to call us TODAY!
Blog posts tagged in Foreclosure
Q: I fell behind on the house payments. My bank stopped accepting payments, and I received a letter saying that my mortgage has been “accelerated”, and that the matter has been referred to a lawyer for foreclosure. What does that mean? Will filing Chapter 13 help this situation?
A: “Foreclosure” is the process by which the lender on real estate takes title back from the borrower because of a default, usually by missing payments. There is no minimum number of missed payments that will trigger this action. If payments are not made according to the schedule set out in the note, the bank has the discretion to foreclose.
Until foreclosure takes place, the property belongs to the borrower. After foreclosure takes place, it belongs to the lender. “Referring an account for foreclosure” means that lawyers have been hired to start the process of foreclosure, which takes weeks to accomplish. “Accelerated” means that the whole debt is due so that that just catching up the “arrears” will not satisfy the lender. Neither means that the bank now owns your property.
Q: I fell behind on the house payments. My bank stopped accepting payments, and I received a letter saying that my mortgage has been “accelerated”, and that the matter has been referred to a lawyer for foreclosure. What does that mean? Will filing Chapter 7 help this situation?
A: When you file a Chapter 7 bankruptcy, an “automatic stay” goes into effect that instantly freezes the ability of a lender to proceed with foreclosure ...whether the lender knows of the bankruptcy filing or not. (If a foreclosure has already taken place by the time you file, however, a bankruptcy will not retroactively reverse it).
Q: What is the effect of filing a Chapter 7 if the house is in foreclosure?