Reviewing Bankruptcy Options with a Foreclosure Lawyer
In Missouri, foreclosure is initiated when a borrower is at least ninety days behind on their mortgage loan. Borrowers who don’t take immediate action default on these mortgage loans. This presents the legal grounds for the lender to seize the property under foreclosure laws. A foreclosure lawyer provides these borrowers with clear solutions to prevent the loss of their home.
Chapter 13 to Stop Foreclosure
Chapter 13 bankruptcy is a viable option for preventing foreclosure. This process allows the borrower to set up a repayment plan over a period of up to five years. The payments are reduced and allow them to avoid immediate foreclosure through an automatic stay.
However, the borrower must qualify for chapter 13 by providing documentation of their income. They must submit records for the last six months that indicate that they have an annual income of more than $55,290. If their income is below this value, they qualify for chapter 7 only. However, chapter 7 is available to borrowers with larger incomes, if they prefer this form of bankruptcy.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy offers debt settlement through liquidation. The borrower provides deeds and titles to the court, who then provides these documents to an assigned trustee. This individual manages the sale of all properties and assets included in the case. Once these items are sold, the proceeds are distributed to the creditors to pay off the debts. The borrower acquires the exempted value for the properties through the bankruptcy claim.
Mortgage Loan Modification
A loan modification could also help to prevent the foreclosure. An attorney may review the loan documents to evaluate the terms of the loan contract, which must indicate that affordability of the loan was established. It must also present the borrower with fair and reasonable terms. If not, the attorney can request a modification.
In Missouri, foreclosure could lead to the loss of a consumer’s home. This legal action is taken by lenders after the borrower defaults on the loan. However, an attorney could help the borrower through bankruptcy or loan modification. Consumers who need assistance through a foreclosure lawyer should visit Stlbankruptcyfirm.com for more information today.
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