October 16, 2013 /24-7PressRelease/
-- When homeowners begin to fall behind on their mortgage, they may have several questions about what they should do to help address the issues that they are facing. In some cases, they may wait too long, which will result in some options being unavailable to them. Lenders may put more pressure on these individuals, which lead to some homes being subject to possible foreclosure actions.
Recently, a new law went into effect that could help some Minnesota homeowners facing foreclosure
. The law allows homeowners an opportunity to contest the foreclosure in situations where lenders may not have followed proper procedures. This forces these companies to take a closer look at their internal policies, which can provide homeowners with the crucial protections they need at such a difficult time.
While this law will help some homeowners, it may not address the actual reasons that the homeowner is experiencing these financial difficulties. There are other options that may allow them the opportunity to remain in their homes, and regain control over their financial situation as well.
Chapter 13 bankruptcy provides many advantages to homeowners facing a potential foreclosure. Under Chapter 13, an individual's debts are reorganized into a more manageable payment system. These payments are made for a period of three to five years, and once completed, the dischargeable debts are considered to be paid in full. This allows the homeowners to stay up-to-date on their mortgage, and also potentially keep their homes if they stay current with these payments.
The major benefit that is provided by filing for bankruptcy is that it puts the protections of the automatic stay into effect. The automatic stay prevents any collections actions from proceeding while the bankruptcy is ongoing. This is very helpful for individuals experiencing financial problems, and often provides them with the opportunity to avoid these issues in the future.
If you are facing a home foreclosure in Minnesota, it is important that you speak to an experienced bankruptcy attorney about all of the options that may be available. Every person's financial situation will be different, and present unique circumstances which need to be closely examined when considering the solution to your specific situation.
An attorney will be able to help you create a plan for your future, and help you protect the things that are most important to you. Do not make these decisions without having a clear understanding of their impact, as the wrong moves at this time could result in more serious financial harm.
Article provided by Prescott & Pearson, P.A.
Visit us at www.prescottpearson.com