Morrisville, PA Mortgage Foreclosure Defense Lawyers

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 215-639-5297 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.

Solutions to Mortgage Foreclosure in Morrisville, PA

There are several solutions to mortgage foreclosure that might allow debtors in Morrisville to halt the process altogether. These include filing for bankruptcy and renegotiating with lenders.

Entering bankruptcy will stop your home from being foreclosed upon because of the automatic stay that will take effect as soon as you file. If a mortgage foreclosure is already in process, bankruptcy will halt an upcoming sheriff’s sale. In Morrisville, there is no right of redemption for debtors that have lost their homes because of mortgage default. This means that once your property is foreclosed upon and sold in a sheriff’s sale, there is no procedure in place for you to get it back, even if you are able to come up with the money. Either Chapter 7 or Chapter 13 bankruptcy can help put a stop to an upcoming mortgage foreclosure in Morrisville.

Our mortgage foreclosure defense lawyers might also be able to negotiate with your lenders to modify the loan you currently have. This might enable you to meet the new mortgage payments put in place so that you do not lose ownership of your property.

If going to court is necessary because a lender refuses to negotiate with a property owner, several defenses can be used to show why mortgage foreclosure is not an appropriate response to missed payments. Often, things do not get that far, as judges typically require lenders and homeowners to enter into mediation to resolve the issue out of court. Regardless, an investigation into a lender’s lending practices may be required to exhibit why a homeowner should be permitted to retain their property, despite defaulting on their mortgage in Morrisville.

What to Know About the Solutions to Mortgage Foreclosure in Morrisville, PA

When entering into negotiations or mediation with a lender, is important to understand that they are not necessarily on your side, and that the offers they might make could be detrimental to you.

Loan Modifications

Certain agreements, such as loan modifications, can greatly help homeowners facing mortgage foreclosure in Morrisville. That said, these solutions might come at an additional cost. For example, consider the pros and cons of a loan modification. When renegotiating the terms of your mortgage, a lender might allow you to lower your monthly payments in return for an extended mortgage. This means you will likely be on the hook for paying off your mortgage for longer than you initially anticipated. It is important to weigh the benefits of doing this and ensure that the new interest rate ascribed to your payments is not too high. If it is, you might face difficulties down the road if you miss future payments and debt begins to accumulate.

Forbearance Plans

Homeowners can face similar issues with forbearance plans. If a lender agrees to a forbearance plan with a debtor, they will allow the homeowner to suspend payments for a set period of time. So that they can also benefit, the lender will likely extend the payment period and increase the total payment amount. Forbearance plans can offer crucial relief for homeowners trying to get on their feet. However, if a homeowner agrees to a plan that only benefits their lender in the long run, it could result in another possible mortgage foreclosure in the future.

Repayment Plans

Often, lenders are open to at least a conversation about repayment plans. These arrangements between lenders and homeowners allow homeowners to repay missed payments according to a new schedule without the threat of mortgage foreclosure. Your lender might agree to give you extra time to repay debts and avoid unnecessary legal proceedings. While this often begins as a casual conversation, it is important to have our attorneys present. Otherwise, your lender might attempt to sell you on a repayment plan that does more harm than good in the long run. Although this could mean that future payments are not satisfied, a lender can get a return on their loan by selling your property in a sheriff’s sale.

Refinancing

It is not uncommon for homeowners to try to take out a second loan to satisfy the payment requirements of another loan. In this case, it would be to pay off a mortgage in an effort to stop foreclosure. This can get homeowners into deeper trouble, especially if they are now beholden to two loans they cannot pay off. Refinancing can be a suitable solution to mortgage foreclosure, provided it is done properly, which is why our attorneys should facilitate and review refinancing plans so that you are not taken advantage of when trying to save your home in Morrisville.

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 215-639-5297.