Category Archives: Foreclosure

Learn more about foreclosure, including the foreclosure process, how to stop foreclosure and how bankruptcy may prevent home foreclosure.

How Can Chapter 13 Bankruptcy Help Me Save My Home?

If you are worried that you may lose your home in foreclosure, you can enter into Chapter 13 bankruptcy and schedule a repayment plan lasting between three to five years. This can help you save your home and stop collection attempts. If you are being hassled by your lender about payments, this process creates an automatic stay that goes into effect preventing the bank from taking action against you. Additionally, if you have a junior mortgage, also known as second or third mortgages, a Chapter 13 bankruptcy allows you to discharge them. Unfortunately, the Baltimore Business Journal reported that foreclosures in Maryland increased in August 2014 by 20 percent over the same month last year. The news outlet reported that state foreclosures were also up 71 percent from July 2014. The Baltimore-area was hit particularly hard by foreclosures, as the rate ranked third in the nation with one in every…
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Scared You May Lose Your Home to a Foreclosure? Bankruptcy May Be an Option

Did you know that you could save your home through bankruptcy if you are facing the threat of foreclosure? During a Chapter 13 bankruptcy, you can enter into a repayment plan lasting between three to five years. If you have an outstanding mortgage balance, this process will give you time to pay off the debt, as an automatic stay goes into effect that prevents a lender from taking actions against you. In addition, if you have junior mortgages, Chapter 13 allows some homeowners to discharge them completely. If you no longer care about living in your home, a Chapter 7 bankruptcy can be utilized if you are facing a foreclosure. The automatic stay will allow you time to find a new place to live. If you owe more money than the house is worth, filing Chapter 7 discharges deficiency amounts that you would have owed without filing bankruptcy, tax-free. Recently,…
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Maryland Shortens Foreclosure Collections Time Period

According to the Washington Post, Maryland Gov. Martin O’Malley signed a bill into law earlier this month that reduces the time in which debt collectors can pursue homeowners in court for an old fore­closure debt from 12 years to three. “We had essentially the worst law in the country,” said state Sen. Jamie B. Raskin, according to the Post. “And that just adds insult to injury. America is the land of second chances.” According to RealtyTrac, Maryland now has the second-highest foreclosure rate in the nation, and the law will now move the state from among those with the longest collection times in the nation to an average rate. Earlier this year, a Washington Post investigation showed that homeowners in Maryland were frequently taken to court over mortgage debts, sometimes years after the foreclosure process had been completed. The new law will help people who are underwater with their homes—as…
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