Homeowners may experience unexpected financial setbacks that put them behind on mortgage payments. Lenders then begin the foreclosure process, which can lead to the loss of a home. In Memphis, many residents look for ways to stop these proceedings. Hurst Law Firm, P.A. offers guidance on legal strategies that may halt or delay a foreclosure, giving homeowners time to address their debt and explore solutions.
Early Steps to Consider
Once a homeowner realizes they cannot make scheduled payments, it is wise to act quickly. Communication with the mortgage lender is often the first move. Some lenders offer loan modifications, repayment plans, or forbearance arrangements that allow temporary adjustments to payment schedules. If homeowners take these steps early, they can potentially avoid formal legal actions initiated by the lender.
Bankruptcy as a Possible Relief
Filing for bankruptcy can place an automatic stay on foreclosure proceedings, which pauses most creditor actions. Chapter 13, in particular, allows homeowners to include mortgage arrears in a repayment plan. This arrangement can give them several years to catch up on overdue amounts while maintaining current payments. Though not every situation qualifies for Chapter 13, many find it a path to retain their homes if they can afford the structured plan.
Other Methods to Halt Foreclosure
Short sales and deeds in lieu of foreclosure may also halt lender action. These options involve transferring ownership to satisfy a portion or the entirety of the mortgage debt. While these alternatives do not preserve home ownership, they can help minimize damage to a person’s credit and avoid the full impact of foreclosure. Careful consideration is essential when deciding if any of these measures align with a family’s financial goals.
How Hurst Law Firm, P.A. May Help
When lenders refuse to negotiate or when homeowners need more time, legal intervention becomes critical. Hurst Law Firm, P.A. reviews financial details and discusses feasible avenues, such as loan modifications or bankruptcy. The firm may communicate with the mortgage company on behalf of the homeowner, striving to secure arrangements that align with the household’s budget. By examining each client’s circumstances, the firm works to stall or stop foreclosure proceedings, offering a chance to pursue a more stable financial path.
