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Foreclosure

Facing Foreclosure? Bankruptcy Can Help

By | Bankruptcy Law, Foreclosure | No Comments

Are you an Auburn or Opelika resident facing foreclosure? Here’s how bankruptcy could save your home.

Foreclosure is the legal process that allows a lender, or creditor, to sell your property to satisfy the debt you owe. Of Alabama’s 2,288,330 homes, 391 went into foreclosure in April of 2022, revealing a foreclosure rate of one in every 5,853 homes.

Fortunately, if you’re an Alabama resident facing foreclosure, a lender won’t begin the foreclosure process until you’ve fallen far behind in mortgage payments. This gives you time to try some alternate measures before filing for bankruptcy, such as loan forbearance, a short sale, or a deed in lieu of foreclosure

When these measures fail, it makes sense to consider whether bankruptcy can help you avoid foreclosure, or at least buy you a little time. As a bankruptcy lawyer in Auburn, Alabama, David S. Clark and his team of professionals have years of experience helping Alabama residents navigate financial hardship and they can help you too.

DISCLAIMER: The following blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.

Need Bankruptcy Help? Call David S. Clark

Delaying Foreclosure With The Automatic Stay 

One of the biggest benefits of filing for bankruptcy is the court-mandated order that causes any creditors to cease their collection activities immediately. Known as “The Automatic Stay”, creditors can’t call, email, visit or do anything that attempts to collect payments from you. 

Ultimately, If your home has been scheduled for a foreclosure sale, and you file for bankruptcy, the automatic stay will legally postpone the sale while your bankruptcy is pending (this process typically lasts three to four months)

While this is true, a lender can appeal to the bankruptcy court for permission to proceed with the foreclosure by filing a “motion to lift the automatic stay.” If successful, a creditor can continue with the foreclosure sale as well as any collection activities. 

Please note that although the automatic stay can temporarily stop a foreclosure sale, you may still lose your home if the foreclosure sale is completed under state law before filing for bankruptcy. 

How Chapter 13 Bankruptcy Can Help

If you are an Auburn or Opelika resident that is facing foreclosure due to unpaid mortgage payments but want to remain in your home, then filing for Chapter 13 Bankruptcy could help. 

Also known as a wage earner’s plan, Chapter 13 bankruptcy enables Alabama residents with a regular income to develop a plan to repay all or part of their missed mortgage payments. The plan is typically between three to five years and requires timely payments or payroll deductions. 

While Chapter 13 Bankruptcy can stop foreclosure proceedings, you’ll need enough income to not only meet your current mortgage payment, but also any arrearage (late unpaid mortgage payments). 

David S. Clark: An Experienced Auburn & Opelika Bankruptcy Attorney

When it comes to understanding the relationship between bankruptcy and foreclosure, it’s a good idea to consult an experienced bankruptcy attorney. With over 25 years of combined experience, the attorneys at David S. Clark are here to help any Auburn or Opelika resident navigate through bankruptcy. 

If you are facing foreclosure and don’t know where to turn, Contact David S. Clark today!

DISCLAIMER: The above blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.

Alabama Foreclosure Basics

By | Attorneys & Lawyers, Foreclosure | No Comments

An Auburn & Opelika foreclosure defense lawyer can help you when facing foreclosure.

With the national foreclosure moratorium due to the COVID-19 epidemic no longer in effect, foreclosures in the United States have seen a dramatic increase over the last several months. 

Given the reality that more Auburn and Opelika, Alabama residents are now vulnerable to their homes being foreclosed on, it is important that homeowners know the reasons why lenders may choose to pursue foreclosure and how the foreclosure process unfolds.

DISCLAIMER: The following blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.

Need Bankruptcy Help? Call David S. Clark

Why Lenders Pursue Foreclosure

Though purchasing a home with cash has seen a recent increase, the overwhelming majority of homebuyers still need to finance their homes because they simply do not have a spare $90,000 to $500,000+ lying around.

Sometimes the desire to be a homeowner can be so strong that a person is willing to agree to a mortgage agreement that is not sustainable long-term so that they can purchase the home. Often, though, when this occurs, homeowners realize they are unable to afford the mortgage payments.

They begin to miss consecutive payments. 

They eventually default on the loan and the lender usually sends what is called a “breach letter” to the debtor. Breach letters alert debtors that the loan is in default. If the payment isn’t made within the stipulated time, the lender can accelerate, or call due, the loan.

If the debtor still does not make the loan payment, the lender will initiate a foreclosure on the home.

The Foreclosure Process

In most mortgage agreements the foreclosure process officially begins when a loan is delinquent for more than 120 days.

The lender, then is required to post a notice of foreclosure for three consecutive weeks in the newspaper before the home can be sold.

Once the home has been posted for three weeks, the lender is then able to hold an auction for the sale of the property.

Redemption Period

In Alabama, debtors who have had their home foreclosed have a brief period in which they can redeem the home by coming up with the necessary money to satisfy the loan agreement.

The period during which a debtor can redeem the foreclosed home varies by case.

If a lender gives the debtor a notice of the right of redemption 30 days before the foreclosure, the debtor has 180 days to redeem the property. If the lender fails to give a notice before the auction of the property and sends a notice afterwards, the debtor has 180 days from the date of the notice to redeem the property.

If the lender never provides a right of redemption notice to the debtor, the debtor has no more than a year after the foreclosure date to redeem the property.

Eviction

When you are facing a foreclosure in Auburn or Opelika, AL, be aware that a lender cannot evict you without giving proper notification. In order for a lender to evict a debtor in the process of a foreclosure, the lender must provide a notice of eviction at least ten days before beginning eviction proceedings.

Help While Facing Foreclosure in Opelika/Auburn, AL

David S. Clark is a foreclosure defense attorney serving the residents of Auburn and Opelika Alabama able to help you navigate the difficult waters of home foreclosures.

David and his team will work on your behalf to help you avoid foreclosure, if possible, or come out on the other side of foreclosure in a more stable financial position.

If you are facing foreclosure in Opelika or Auburn, AL and need a foreclosure defense lawyer, contact David S. Clark today.

DISCLAIMER: The above blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.

Avoiding Foreclosure in Auburn or Opelika, AL

By | Attorneys & Lawyers, Foreclosure | No Comments

When you fail to pay massive mortgage payments, your dream home can quickly turn into a nightmare.

The U.S. housing market has proven resilient during the pandemic, and Alabama has been no exception. While Auburn and Opelika home sales positively increased during the pandemic, mortgage rates are continuing to rise. 

These higher rates transform the once affordable asking price of a house, into a dangerous growing expense for homeowners. 

Because higher interest rates make mortgages less affordable on a monthly basis, it can quickly cause you to fail to pay your mortgage at all. 

Banks quickly act on payment failures, leading to a difficult process known as foreclosure. This is the legal process where your mortgage company obtains ownership of your home. 

This process can produce long-lasting and stressful consequences, but it can be avoided. 

When foreclosure is imminent, Auburn or Opelika Alabama residents may need a foreclosure defense attorney to avoid such a crisis. 

Why Hire an Opelika Foreclosure Defense Attorney? 

Knowing the options available to you when attempting to fight a foreclosure and navigating the technicalities of them can be daunting for anyone. 

Hiring a foreclosure defense attorney can be the difference between sinking and swimming for you when navigating these dangerous waters.

From stacks of paperwork to multiple intimidating meetings, if you are caught in the vast legal landscape of foreclosure or if you are only beginning the process, a foreclosure defense attorney can change the result of foreclosure in some key ways: 

DISCLAIMER: The following blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.

Need Bankruptcy Help? Call David S. Clark

Loss Mitigation 

Loss mitigation is the process of protecting homeowners from foreclosure. It refers to several strategies that could be employed to keep homeowners current on their mortgage payments while remaining in their homes. 

Before beginning the process of receiving loss mitigation, homeowners will be required to submit a loss mitigation application. 

This application includes personal information, property information, and mortgage terms. It may also require pay stubs, tax returns, and financial statements. 

Without accurate information in each of these categories, foreclosure could still occur. 

Without an attorney you would likely have no idea how to navigate loss mitigation in order to avoid foreclosure on your home. 

There are many strategies that can mitigate loss. Some of the most common are repayment plans and forbearance plans.

Repayment Plans

If you missed payments due to sickness or job loss, repayment plans can be negotiated to add payments to make up for the payments missed. 

Forbearance Plans

Forbearance plans allow the homeowner to make reduced payments for a specific period of time. These allow you to get out of a financial hardship and can put you in a position to negotiate new repayment plans.

Modification of Your Loan

Loan modification is a change in the original terms of your mortgage loan. In order for someone to apply for this option, homeowners must provide financial information, mortgage terms, and the specifics of the financial hardship. 

The accurate presentation of these requirements is crucial. 

Foreclosure defense attorneys can ensure that all of your loan information is reported correctly, so that you have the best chance of modifying your loan. 

There are various ways that your loan can be modified. Some of the most common modifications are:

Payment Amount

This is the most common method of loan modification. 

Banks modify a homeowner’s existing mortgage payment to a more affordable amount (though you will usually have to pay more in the long run). This can lessen financial stress and place you back in good standing with the bank. 

Length of the Loan

Length of a loan is another consideration in the loan modification process. Rather than decreasing the overall payment, banks can lengthen the repayment period in relation to a homeowner’s financial situation. 

Interest Rate

With all mortgages, homeowners pay back a portion of the amount borrowed plus interest every month. In this method of loan modification, these interest rates can be altered to lower percentages, creating a more affordable total payment. 

David S. Clark–An Auburn/Opelika Foreclosure Defense Attorney

Facing the threat of foreclosure is a scary and difficult process to navigate, but you don’t have to do it alone!

David S. Clark is a dedicated Auburn/Opelika foreclosure defense attorney that will do everything in his power to help you avoid foreclosure. 

Contact David S. Clark, Attorney At Law and get your free consultation today!

DISCLAIMER: The above blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.