Options To Consider When Intending To Fight Foreclosure In Northwest Indiana

By Nancy Kennedy


After receiving a notice that your home is due for foreclosure, the first thing you are likely to do is panic. Fortunately, the notice does not always mean that you have to lose your home. A foreclosure attorney can evaluate your situation and tell you whether you have a winning chance if you choose to fight the proceedings. When facing foreclosure in Northwest Indiana, there are three sure strategies that may be helpful.

You could begin by trying to prove that there was a procedural error. In each state, there are strict guidelines that govern how lenders can foreclose a property. These guidelines protect borrowers to a certain level because they give them certain rights even in the event when they have fallen behind on their payments. If the state guidelines were violated at any point, you have a real chance of saving your home from being foreclosed.

You can also get yourself off the loop if you can demonstrate that the terms of a specific lender were unconscionable. Loan agreements typically favor lenders because the stakes are high for them. However, if these terms are unacceptable and legally unenforceable, then the courts could rule in your favor and stop the foreclosure.

With your signature on the dotted line of a lending agreement, fighting the terms of a contract will not be a walk in the park. In this case, the greatest favor you owe yourself is one of hiring a seasoned attorney. The professional will find the best approach to demonstrate that specific lending terms are grossly unacceptable. The specialist may even target demonstrating how a lender tried to financially extort you.

Another practical option you may consider is to file for Chapter 13 bankruptcy. This offers a reorganization plan and you will get room to breathe and catch up on overdue debts, including mortgage payments. If you want to stop foreclosure by seeking bankruptcy relief, the need to act fast must not be underestimated.

At this point, you are possibly wondering when is the most ideal time to file a bankruptcy petition with the hopes of dodging foreclosure. Well, there are instances when filing under Chapter 7 is the most ideal option that one has. In this case, a bankruptcy petition may not save you from losing your home, though it will delay action from your lender. The extra time you get can be used to gather finances and save your home.

A bankruptcy petition automatically triggers a stay. Creditors must stop all collection efforts and this means that your mortgage lender too has to back off. It will take months before your case is determined and this will be reasonable time for you to save, gather funds and save your home.

If repaying your mortgage balance is clearly impossible, you should file for chapter 7 ahead of the foreclosure to save yourself from deficiency judgment. This is when the foreclosed home is sold for less that the value of your default loan. Once you have filed your petition, the mortgage balance is discharged and your lender cannot take further action against you in case of a deficiency.




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