First of all…and it’s much easier said than done, but do not feel shamed or badly. You find yourself in the same situation as many home owners throughout Massachusetts. The fact is….we are all victims of a bad economy…devalued housing market…and of course the standard challenges that life continuously throws at us. That said, the best thing you can do is be educated about the options you have and how to preserve them.
The good news….yes…there is good news….is that there are several options, that with the help of experienced lawyers, you can utilize to postpone any actions by the bank, either temporarily or permanently.
Banks throw the word foreclosure around far too freely. They do so, as it clearly strikes the nerve of many home owners…and rightfully so. No one wants not should have their home stripped from them. Banks must comply with several strict statutes in Massachusetts to in fact complete a foreclosure. It is a lengthy and detailed process….the key word being lengthy. Just because a bank tells you that they are proceeding with foreclosure…does not mean it is literally about to occur. Rather, it just means that they have or intend to begin the process. Luckily for you….you have time.
Unless you have been served with a notice form the Massachusetts Land Court…and provided a date for an actual foreclosure auction…just remember that the bank is most likely in the preliminary stages of the foreclosure. Most importantly….this means it is time for you to speak with someone who can show you your options.
Those options are as follows:
– Ch. 7 Bankruptcy – If your house is worth less than you owe….or you just do not have the financial ability to keep the home..you can file for protection under the bankruptcy code. This particular section of the code, would avoid the need for a foreclosure….rather you would be able to eliminate the debt from the home and surrender it back…on your own terms.
– Ch. 13 Bankruptcy – You can keep your house….This section of the code allows you a period of time to pay back the amount you are behind…penalty free. In the simplest of terms….it is a repayment plan for home owners who found themselves behind on payments. These are very common and a great way for home owners to keep their homes and to actually make their lives easier
– Loan Modification – Work with the bank to see if you qualify for a modification of your mortgage. You can lower your interest rate….extend the length of time on the mortgage…You can also attempt the modification within the bankruptcy.
– Short Sale – If you do not qualify for a Bankruptcy…and want to remain in the property for a while longer….a short sale is a very good option. Essentially, you would sell your home for less than is due to the bank….and by utilizing our experienced lawyers you will not have any liability for the deficiency…. More simply, you will not owe the bank the difference of what you sell the house for and what you sold it for.
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