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Levittown, PA Mortgage Foreclosure Lawyer

“Foreclosure” is a term that is scary to many people. People work all their lives to have a home or place of business they care about. For there to be a threat to have it all taken away is terrifying. Many people who are facing foreclosure may become frustrated, scared or frightened, and may not know what to do.

If you are facing a possible foreclosure on your home, our lawyers can help you figure out the best way to prevent foreclosure so you can keep your house. Although paying the mortgage off and working with your creditors are technically ways to avoid foreclosure, the reality is that successfully doing either of these things can be difficult. Payments can be difficult for parties already facing debt, and creditors may not want to cooperate with you fully. Another possible method is to file for bankruptcy. Bankruptcy can stop a foreclose, but it is a serious decision that you should only make after assessing all of your options.

Call our mortgage foreclosure lawyers today at (215) 701-6519 to schedule a free case review at Young, Marr, Mallis & Associates.

What is Foreclosure?

Foreclosure is a formal proceeding where a creditor takes control of property secured by a mortgage. They happen when the debtor does not make payments on their mortgage several times over. Since the debtor is not living up to their end of the obligation, the law allows creditors to take the property as a substitute for payment and then sell it to recoup their losses.

Terms to Know for Foreclosure in Levittown, PA

Like many things in the real estate world, foreclosure proceedings use some odd terms that are not necessarily known by everyone in the general public. This is because they either do not see a lot of use in common parlance or have specific meanings in foreclosure proceedings. Fortunately, our mortgage foreclosure lawyers have compiled an explanation of some key terms frequently used in foreclosure proceedings so that you have an idea of what is going on.

Mortgagor and Mortgagee

Some of the most confusing terms for people dealing with foreclosure are “mortgagor” and “mortgagee.” These are strange words that do not have an obvious meaning beyond having something to do with mortgages.

Since foreclosures often deal with parties not following the terms of a mortgage, this makes sense. The “mortgagor” is the borrower. This is you. They are the party bound by the mortgage. The “mortgagee,” therefore, is the lender. Usually, the mortgagee is a bank.

The terms mortgagor and mortgagee are a bit archaic at this point in time, so frequently mortgages may use different words for these parties. “Lender,” “bank,” or “creditor may be used instead of mortgagee, and “debtor” or “borrower” can be used instead of mortgagor. Since multiple terms may mean the same thing, it is important to have experienced legal counsel look at the relevant documentation and make sense of it.

Default

A “default” is something outlined in a mortgage that triggers something else happening. Virtually all of the time, a default is a way that a party does not live up to their end of the mortgage. Missing payments is considered a default. Other defaults may be specific to your mortgage. For example, it could be a default to use a residential property as a storefront.

Judicial and Non-Judicial Foreclosure

There are two kinds of foreclosure: judicial foreclosure and non-judicial foreclosure. As would be expected because of the name, judicial foreclosure is done by court order and the court system as well as a judge oversee the process. Non-judicial foreclosure, on the other hand, does not require those things. A nonjudicial foreclosure can be carried out without the lender going to court to get a court order. It is important to understand which kind of foreclosure is allowed in the terms of your mortgage. If the lender tries to do something that is not allowed, our lawyers may be able to fight against it.

When and Why Mortgage Foreclosure Might Happen in Levittown, PA

Foreclosure may occur when a homeowner misses too many mortgage payments, and the creditors on the mortgage essentially reclaim the property to sell. Generally, creditors can only initiate foreclosure on a property if you have missed several months of payments. Being behind in payments by only a month or two is troubling but should not lead to foreclosure.

The purpose of foreclosure is to allow creditors to sell the property in question and use the proceeds of that sale to recoup their losses. Foreclosed homes are often sold at auction, and many people scramble to buy them because they tend to be cheaper. In many cases, there is no money left over for homeowners, and they are left with nothing.

If your mortgage is quite high and the value of your home has decreased since you purchased it, you might be left with remaining debt. It is not uncommon for homeowners to lose their homes to foreclosure, and then the sale of their homes does not cover all their debt.

Dealing with foreclosure is certainly stressful, but our mortgage foreclosure lawyers can help you file for bankruptcy and potentially avoid foreclosure. Contrary to what people think, bankruptcy does not always mean you lose everything. It can be a fresh start to help you get out of debt.

How to Defend Yourself Against a Mortgage Foreclosure in Levittown, PA

Pay the Debt

The most straightforward way to defend against foreclosure is to pay the debt. However, this method is also the most difficult, practically speaking. Individuals getting foreclosed on are probably not in a position to instantly pay off a debt. That being said, if this is an option for you, our lawyers can help work something out.

Restructure the Agreement

Another way to avoid foreclosure is to negotiate with the lender and rework the agreement you have with them so that you can actually pay them what they are owed. Ultimately, creditors/lenders want to get paid, and are not too picky about how that happens. If, for example, we can work something out where you pay them a lower amount per month over a longer period of time, that could avoid foreclosure proceedings.

By law, lenders must try and contact you to try and work something out prior to initiating foreclosure proceedings. If they have not done this, you may have legal options you are able to take with the help of our lawyers.

However, be aware that creditors may not be in the greatest of moods when trying to contact you for this purpose. There is a chance that the terms they offer are not workable in your situation, or that they do not deem your offer to work with them acceptable. Our lawyers can work with you to either come to an agreement with your creditors or to pursue other options should they not be cooperative.

File for Bankruptcy

Understandably, most people want to avoid filing for bankruptcy. However, when faced with foreclosure, filing for bankruptcy might help you keep your home and other assets or properties. You can file for bankruptcy in several ways, and choosing the right bankruptcy chapter for your case is crucial.

Individuals often file for bankruptcy under Chapters 7 or 13. Businesses filing for bankruptcy may file under different chapters. Chapter 7 bankruptcy concentrates on liquidating your assets and using proceeds from selling your property to repay debts. While Chapter 7 bankruptcy may be completed relatively quickly, it often costs people their homes and assets and might not be best for someone facing foreclosure.

Alternatively, many individuals file for Chapter 13 bankruptcy because it allows them to reorganize their finances rather than liquidate assets. As such, many people who successfully navigate Chapter 13 bankruptcy come out the other side with less debt and their homes still in their possession.

What Happens When You File for Bankruptcy in Mortgage Foreclosure Cases in Levittown, PA?

Bankruptcy may be a great way to stop foreclosure proceedings and give you time to get your finances and assets in order. Generally, after a person and their lawyer file for bankruptcy, the court orders a stay of the foreclosure. This stay effectively puts the foreclosure on pause for a certain period of time, often 30 days or possibly longer.

If you file for Chapter 13, you and our mortgage foreclosure attorneys will come up with a payment plan for the court and your creditors to review and approve. If approved, creditors cannot foreclose on your home for the duration of your payment plan, often several years, unless you fall behind on mortgage payments and arrears.

By the end of your payment plan, you should hopefully be caught up on your mortgage. Additionally, other debts might be discharged or paid off, allowing you to more easily afford your mortgage.

When Debts Might be Discharged After You File for Bankruptcy in a Mortgage Foreclosure Case in Levittown, PA?

As mentioned briefly before, certain debts, often unsecured debts, might be discharged after you file for bankruptcy. A discharge is a court order that states you are no longer legally obligated or liable for repaying a debt, and the creditors may not contact you for payment. Generally, mortgages are not subject to discharge, but other debts might be. If you can get enough other debts discharged, it should be easier for you to focus on your mortgage and keep your home.

Chapter 13 discharge only occurs after you have finished your payment plan. Again, payment plans under Chapter 13 often last for about three to five years, possibly longer. While discharging your debts is possible, you should not expect anything to be discharged for some time. Often, payment plans take into consideration the possibility of debts being discharged, and you might only have to plan to repay a certain amount of money before a debt is discharged.

Commonly discharged debts include credit cards, medical bills, and various unsecured loans. Debts that cannot be discharged include alimony, child support, restitution payments, and debts incurred through fraud or misrepresentation. Depending on your debt situation, many of your debts might be eligible for discharge through bankruptcy.