Many residents of San Diego are underwater with their homes. The terrible housing market has created a situation where many homeowners are paying much more on their mortgages than their houses are actually worth. Adjustable-rate mortgages have also created a situation where house payments get out of control and homeowners can’t do anything to change the situation. Under the circumstances, foreclosure has become a much more common occurrence that many people, even people with steady income and good jobs are currently facing.
If you’re trying to stop foreclosure in California, you might want to consider filing for bankruptcy. There are other methods that you can try first, such as refinancing your mortgage or trying to negotiate directly with your lender. However, when these methods fall short, filing for bankruptcy can be an effective method to stop foreclosure.
Stop Foreclosure with Bankruptcy
Filing for Chapter 13 bankruptcy can prevent foreclosure by giving you a chance to reorganize your debt and create a repayment plan that will give you 3 to 5 years to pay off what you owe your creditors. You can stop foreclosure in San Diego through Chapter 13 by having a San Diego foreclosure lawyer negotiate on your behalf with the bankruptcy court to try to minimize your debts and create a reasonable plan for repaying what you owe.
You’re much less likely to stop foreclosure when you file for Chapter 7 bankruptcy. In this case your home could be used as an asset to repay the debts that you go. If you’re trying to stop foreclosure with bankruptcy, Chapter 13 is generally your best choice. However, not everyone qualifies for Chapter 13 bankruptcy. You need to have steady income and the ability to repay your debts over time in order to qualify for Chapter 13.
If you will have to file for Chapter 7 bankruptcy, you may not be able to stop foreclosure on your home, but you will delay it by several months. This is because filing for Chapter 7 or Chapter 13 puts an automatic stay on your debts. This means that your home loan lender will not be able to sell your property or collect on your mortgage while you’re trying to stop foreclosure with bankruptcy.
Hire a San Diego Foreclosure Lawyer
The process of trying to stop foreclosure in California can be difficult and stressful. That’s why it’s a great idea to have a San Diego foreclosure lawyer on your side to help see you through the process and provide you with sound legal counsel along the way. Trying to stop foreclosure with bankruptcy isn’t the right choice for everyone, but an attorney can help you find out if it’s the right choice for you.
If you’re looking to stop foreclosure in San Diego, contact the law offices of Scott Orona today by calling 619-306-7627. Attorney Orona can provide you with legal advice regarding how you might be able to prevent foreclosure through bankruptcy or other legal methods. With over 20 years of experience, Attorney Scott Orona is a smart choice for your foreclosure lawyer as he has handled over 8,000 cases in the state of California.