Help!!! My House Is In Foreclosure
BEFORE YOU PANIC establish where you presently are in the foreclosure process:
You've received a letter from your lender telling you that you're behind in your payments.
The letter says: "If you don't catch up we're going to foreclose"
You receive a letter from a company you don't recognize that says: NOTICE OF DEFAULT
You receive a second letter from that company that tells you a DATE, TIME, and LOCATION when your house will be sold.
"OK", you say. "This sounds pretty serious. When exactly is it that I should PANIC?"
If you have the money to pay the back payments but the DATE and TIME of the sale is less than 5 days away.
If you don't have the money to pay the back payments and the DATE and TIME of the sale is within the next 24 hours.
If the DATE and TIME of the sale is yesterday.
And now for some Legalese. Being on an escalator that stops running is quite different from being on an elevator that stops running. So read the fine print. Do you want to save your house? There is a legal procedure called a Chapter 13 that accomplishes this result quite nicely. In this process your back payments can be repaid over a period of time from 36 months thru 60 months. AND, your lender cannot refuse to go along, IF you can perform on this plan.
Do you want to let the house go?
Your biggest concern at this point should be whether or not you will have an income tax consequence because of the foreclosure sale. If you will, you might consider filing a Chapter 7 procedure before the sale happens.
Important to Know:
Filing either a Chapter 13 or a Chapter 7 at any time prior to the DATE and TIME of the sale will abruptly stop the foreclosure sale from happening.
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