During the economic meltdown the last few years, a staggering number of families have lost their family home. The statistics regarding the number of families struggling with foreclosure are overwhelming. Over 62,000 families per month lose their homes to foreclosure. Data indicates that the family of a child in every classroom in America is at jeopardy of losing their home to foreclosure. Many people facing foreclosure are afraid to ask for help because they think that their inability to keep up with mortgage payments reflects negatively on their fiscal responsibility. The failure to ask for help is tragic because an experienced Arizona bankruptcy attorney may be able to make foreclosure stop.
Many people facing foreclosure were victimized by predatory lenders, suffered unforeseen circumstances like job loss or did not understand the sophisticated terms of their mortgage. The economic slowdown resulted in falling housing prices and anemic home values that combined with variable interest rates which spiraled out of control. These combinations of causes have resulted in millions of families facing the loss of what was traditionally the most valuable asset for families.
If you are behind on your mortgage or one of the many people currently facing unemployment in Arizona, there may be strategies that our Arizona bankruptcy law firm can use to stop foreclosure on your family home. The Chapter 13 bankruptcy process can be an invaluable tool in helping you stop a foreclosure and maintain ownership of your home. If you qualify for a Chapter 13 bankruptcy, you may be able to make payments on your mortgage arrearages (past due payments) over the course of 3 or 5 years while maintaining the current payment. Depending on your situation, we may also be able to help you eliminate some or all your unsecured debt including credit card debt, unpaid utility bills, unsecured loans, unsecured credit lines, medical bills and similar financial obligations that are not secured by collateral.
Another way our law firm may be able to assist you in preventing or stopping foreclosure of your home is by helping you extinguish your second mortgage. A second mortgage or home equity line of credit may be eliminated under certain circumstances, which can be an invaluable tool that you may use to stop foreclosure in the future. Sometimes a bankruptcy judge will agree to “strip down” the loan if the value of the property falls below the value of the first mortgage. If the bankruptcy court allows the secured obligation whether a second mortgage or secured credit line to be stripped, then the obligation becomes like any other unsecured debt that may be subject to discharge in a Chapter 7 or partial discharge in a Chapter 13. This process of debt stripping can be an invaluable tool for preventing or stopping foreclosure in the future by a secured creditor.
An obligation is only secured under the bankruptcy code to the extent there is positive equity or value in the asset to which the lien is attached. If you owe less than the outstanding amount of your unsecured loan, there is no equity against which to enforce a second mortgage or secured line of credit, so the obligation becomes essentially an unsecured obligation. Once your first mortgage has been deducted from the home’s existing market value, our experienced foreclosure defense attorneys may be able to get the remaining liens stripped off in Chapter 13 bankruptcy proceedings. Liens typically survive a bankruptcy discharge so a stripping a lien involves filing a Motion to Avoid Lien with the Court. You also must successfully complete the Chapter 13 bankruptcy plan by making all plan payments and receiving a bankruptcy discharge.
At Stone Rose Law, we are committed to helping families stop foreclosure and save their family home. Our Arizona bankruptcy law firm has helped thousands of people avoid or stop foreclosure. Stone Rose Law knows the value of your family home, and our knowledgeable bankruptcy attorneys are prepared to help you fight for your home so contact us online or call us today at 480-498-8998 today.