Saving your Home from Foreclosure
If I can't make my back mortgage payments, how can I save my home from foreclosure?
Answer: You can save your home from foreclosure by filing a Chapter 13 bankruptcy before the foreclosure. You must also give notice to the mortgage company before they foreclose (this can be done by fax).
What do I do then?
Answer: After you have stopped the foreclosure you have to come up with a plan to pay off the back mortgage payments.
How quick do I have to pay off the back mortgage payments?
Answer: 3 - 5 years. So if you owe $12,000 in back mortgage payments on the day that you file, you pay $200 per month plus interest and fees for 5 years to catch up.
What if the mortgage company refuses to take a pay-out on my back mortgage payments.
Answer: This is a Chapter 13; they can't refuse.
So, if I file a Chapter 13, do I have to make my normal mortgage payments after I file?
Answer: Yes, and this is very important. You have to start back with your normal monthly mortgage payments as soon as you file. If you can't do that, you should consider a Chapter 7 instead and relinquish your house and save your money.
Are there other uses for a Chapter 13?
Answer: Plenty. For instance, it stops all bill collectors and lets you pay back as much of your debt as you can.
Do I have to pay back all of my debt in a Chapter 13?
Answer: No. You only pay back what you can over 3 - 5 years.
So if I file a Chapter 13 and make payments, can those payments include both my back mortgage payments and my taxes?
Answer: Yes. You keep your house because you are doing a pay-out on your back mortgage payments and IRS can't touch you while you are making your payments. And you pay off your taxes without penalty and, in some cases, without interest.
Can I bankrupt any of my taxes?
Answer: Yes, you can bankrupt (discharge) income taxes were last due more than 3 years before you file (but calculating that three year period can be tricky because there are several exceptions).
How much does it cost to file a Chapter 13?
Answer: Generally, we charge $350 down. The rest of the fee can be paid out in your Chapter 13 monthly payments. Depending on the case, however, we may require more down.
How soon do you have to let us know in order to stop a stop a foreclosure?
Answer: If you want us to represent you in a Chapter 13 for $350 down, you should call at least two weeks before the foreclosure date.
When do they foreclose?
Answer: You should receive a notice with the date of the foreclosure in the mail about 20 days before. And all foreclosures in Texas have to take place on the first Tuesday of the month.