If you are facing foreclosure, you may have heard you can stop your bank from taking your home by filing for bankruptcy in Miami. While it is possible, filing bankruptcy is a complicated process that can end up bank firing if you are not careful. Each situation is different and only a Miami bankruptcy lawyer can tell you what is best for you and your family. There are several different ways to avoid foreclosure besides bankruptcy.
When facing foreclosure your first instinct might be to save your family’s home. It is important that you be realistic about your situation and realize that it may not be the best option for your family. If your home is now worth less than you owe or if you are unemployed or simply cannot afford to make your monthly mortgage payments, foreclosure may be in your best interests.
As soon as you fall behind on your mortgage payments, it is important that you contact your mortgage provider. If you file for foreclosure, the bank will not be able to make its money back. They want to keep you in your home and making your mortgage payments each month. Ask for a loan modification that can lower your monthly payments. In order to keep you in your home, the bank may be willing to restructure you loan over a longer period of time, forgive part of your principal balance or lower your interest rates. It never hurts to ask your lenders for a bit of leniency during difficult financial times.
As soon as you file bankruptcy, your creditors are required to stop collecting payments. However, filing a last minute bankruptcy before a foreclosure sale can also back fire on you. Banks are used to11th hour effort to stop foreclosure and can just ask the courts to lift the stop on the foreclosure and proceed with the sale anyways. If that happens, you will be out the money you paid to file for bankruptcy, or could be forced to go through with the bankruptcy after the foreclosure. Do not think that bankruptcy is your only option to save your home.