Pennsylvania Mortgage Foreclosure Defense Lawyer
Buying a home is the biggest purchase that most Pennsylvanians will ever make. But your home is more than just an investment – it’s the center of your family’s life together. Being threatened with foreclosure is a stressful experience, not only because of your emotional attachment to the property, but also because of the financial impacts. The good news is that through bankruptcy, mortgage modification, or other financial strategies, it may be possible to delay or even prevent foreclosure. Serving homeowners throughout Philadelphia and Bucks County, the mortgage foreclosure defense attorneys of Young, Marr & Associates are here to help.
At Young, Marr & Associates, we understand how much your home means to you – not only in terms of dollars and cents, but also your happy memories and the sense of pride you take in your property. We know how much is at stake in a foreclosure lawsuit, which is why we fight so aggressively to help our clients keep their properties and stay in their homes. Armed with over 30 years of experience representing thousands of individuals, our Bucks County and Philadelphia foreclosure lawyers are committed to helping Pennsylvania homeowners find affordable solutions with their lenders. For a free legal consultation about how to stop foreclosure in Philadelphia or Bucks County, contact us online, or call Young, Marr & Associates at (215) 701-6519 today.
Can Bankruptcy Stop a House Foreclosure in Pennsylvania?
There are several methods for postponing or preventing foreclosure on your home. Depending on the circumstances, one possible method is filing for bankruptcy.
There are two main types of personal bankruptcy in Pennsylvania: Chapter 7 bankruptcy (also called “liquidation” or “ordinary” bankruptcy) and Chapter 13 bankruptcy (also called “reorganization” bankruptcy or a “wage earner’s plan”). Chapter 7 affects the Pennsylvania foreclosure process differently than Chapter 13, so it’s important to have a clear understanding of each. Our bankruptcy lawyers handle both chapters, and, if we determine that bankruptcy is the right approach to your foreclosure case, will help you make the right decision about which chapter to file.
Home Foreclosure in Chapter 13
Chapter 13 is generally the stronger of the two bankruptcy chapters when it comes to stopping foreclosure. This is because unlike Chapter 7, Chapter 13 allows “debtors” – the people who file for bankruptcy – to catch up on missed mortgage payments, which are also called “mortgage arrears.”
When you file Chapter 13, you will create a plan to repay, to varying extents, your creditors. This plan is what allows you to cure past-due or delinquent mortgage payments. However, there is a catch: you must have enough disposable income to fund the plan, which lasts for three to five years. If you do not have enough disposable income for Chapter 13, you may need to explore Chapter 7 or alternatives to bankruptcy.
Home Foreclosure in Chapter 7
Chapter 7 bankruptcy is a faster, simpler, and easier process than Chapter 13. However, it may not be as effective in preventing foreclosure, because Chapter 7 does not allow debtors to catch up on missed payments like Chapter 13.
What Chapter 7 can do is buy time, due to a feature called the “automatic stay.” The automatic stay can temporarily postpone foreclosure procedures, which could enable you to reach an agreement with your lender. Additionally, by wiping out various debts, Chapter 7 could potentially free up adequate space in your budget to get current on your mortgage and make steady payments going forward.
How to Prevent Foreclosure on Your Home
If you are unwilling to file for bankruptcy, or if bankruptcy does not make financial sense for your present situation, there may be other alternatives that would serve you better. Bankruptcy alternatives for foreclosure prevention include mortgage modifications, forbearance agreements, and short sales.
Method #1: Mortgage Modification
It may be possible to negotiate a mortgage modification with your lender. Depending on the terms of the loan, the modification might extend the payment period, lower your interest rates, or wipe out a portion of the principal. Without aggressive legal representation, it can be difficult for homeowners to obtain mortgage modification agreements, but our attorneys are highly experienced in these types of negotiations and understand what tactics work.
Method #2: Forbearance Agreement
Unlike a mortgage modification, a forbearance agreement does not change any of the provisions of your loan. Instead, a forbearance agreement temporarily delays payments, generally for a period of up to six months, giving you breathing room to create a long-term plan.
Method #3: Short Sale
A short sale may be able to prevent foreclosure if other methods, such as loan modifications or forbearance agreements, are not available to you. In a successful short sale, the lender accepts a lower amount than the actual worth of the property.
Pennsylvania Mortgage Foreclosure Defense Attorneys for Homeowners
Losing your home to foreclosure may be an avoidable outcome. However, if you wait for too long, it may become impossible to reverse or halt the foreclosure process. Therefore, it is crucial to act quickly. To schedule a free legal consultation about how the Philadelphia foreclosure defense lawyers of Young, Marr & Associates may be able to help you keep your house, contact our law offices online, or call (215) 701-6519 today. We serve homeowners throughout the Philadelphia and Bucks County regions.
☑ Been paying credit card balances that seem to never go down?
☑ Lost your job and are now having trouble keeping up?
☑ Attempted to work out a payment arrangement to no avail?
☑ Been notified of a mortgage foreclosure action?
☑ Been denied for a mortgage or other line of credit?
If the answer to any of these questions is “yes” then bankruptcy may be an option that you should consider.