Morrisville, PA Mortgage Foreclosure Defense Lawyer

The mere mention of the word “foreclosure” can strike fear and dread into the hearts of homeowners everywhere. Homeowners work incredibly hard to maintain the lives that they have built up through their hard work and dedication. To have to face the prospect of one’s home – one’s castle – being taken away can be demoralizing. If you have been threatened with the looming prospect of a foreclosure on your home, business, or other property, you might be feeling scared, confused, and unsure of what to do next.

Fortunately, our lawyers can help. We are experienced attorneys who have helped clients dealing with an impending foreclosure in the past, and now we are ready to help you avoid foreclosure proceedings and hold onto what you have worked so hard for.

Call our mortgage foreclosure defense lawyers with Young, Marr, Mallis & Associates at (215) 701-6519 for a free analysis of your situation.

What is Foreclosure in Morrisville, PA?

Foreclosure is a process by which a lender tries to recover what they are owed in a defaulted loan by taking the debtor’s real property and selling it. Each foreclosure is different, and what triggers foreclosure is going to be laid out in the mortgage agreement with your lender. Generally, foreclosures are triggered when a certain number of payments on a mortgage are missed. However, foreclosures can also happen if other terms of the agreement are not met.

Why Do Foreclosures and Foreclosure Sales Happen?

The purpose of foreclosure is to allow a creditor to sell a debtor’s property to recoup losses on an unpaid loan. Creditors, however, are generally not in the business of holding onto real estate. They are usually banks or other financial institutions that really do not want to be holding onto a house long-term. For that reason, homes sold in foreclosure proceedings are generally much cheaper than they would be at market value.

Nobody likes thinking about their home being sold off to the highest bidder. Our mortgage foreclosure defense lawyers will do their best to try and make sure that does not happen.

Bankruptcy in Morrisville, PA Foreclosure Proceedings

One way that you can prevent foreclosure from happening is to file for bankruptcy. When you file bankruptcy, something called an “automatic stay” kicks in. An automatic stay is a court order that prevents the collection of debts from the debtor and puts together a plan to have the debtor pay off their creditors. The cessation of debt collection thanks to the automatic stay is what makes filing for bankruptcy stop foreclosure proceedings dead in their tracks.

Filing for bankruptcy might seem like a desperate move, and it is often thought of as such by the general public, but that is not the case. Historically, debt could land you in prison. However, bankruptcy laws in the United States are particularly forgiving, and the focus is more on getting creditors paid and clearing debts as efficiently as possible.

Bankruptcy is less an admission of destitution and more a chance to reset and start fresh. The goal is to have the debtor pay off the creditor while still being able to live their life comfortably at the end of proceedings. That being said, filing for bankruptcy is not a decision that should be taken lightly, and you should consult with our lawyers before ultimately deciding what to do.

There are many chapters of bankruptcy that you can file. Each chapter is suited to debtors in different situations. Moreover, some chapters of bankruptcy are better suited for foreclosure proceedings than others. We will go over some of the advisable chapters to file bankruptcy under when facing a foreclosure below.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is the most straightforward form of bankruptcy you can file. Chapter 7 bankruptcy merely liquidates your assets in order to pay off debts as quickly as possible. To “liquidate” assets means to sell them for money. While filing for bankruptcy under Chapter 7 will stop foreclosures, it is not always the best way to hold on to specific assets.

Chapter 7 is built around expediency and ease of paying off debts at the expense of preserving assets. This means that it is often ideal for people with few assets to begin with. After all, once you run out of assets to liquidate in bankruptcy, any unpaid creditors are left out to dry and cannot pursue you after bankruptcy proceedings have ended. Consider filing for Chapter 7 bankruptcy if you do not particularly care about holding onto any one asset and wish to finish proceedings as soon as possible.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is much more structured than Chapter 7 bankruptcy. Chapter 13 bankruptcy allows you to reorganize your assets rather than simply liquidating them. It is similar to Chapter 11 bankruptcy but is more focused on individuals and spouses than on businesses. Instead of selling off everything all at once, a court-approved payment plan is put in place for you to pay your creditors in a Chapter 13 bankruptcy proceeding.

Important in a foreclosure context, Chapter 13 instantly stops foreclosure proceedings. Once Chapter 13 bankruptcy starts, you can pay off the lender for your mortgage over the course of a payment plan that works for you.

If you are planning on filing for Chapter 13 bankruptcy, you should do so before foreclosure proceedings begin. If the mortgagor for your house starts and completes a foreclosure sale while you are deciding what to do, there is no way to recover the house, even if you subsequently file for Chapter 13 bankruptcy.

Talk to Our Morrisville, PA Mortgage Foreclosure Defense Lawyers Today

Young, Marr, Mallis & Associates’ mortgage defense lawyers are ready to discuss your case when you call (215) 701-6519.