Understanding the legal aspect of foreclosures

By Pat Forte, Attorney

A foreclosure is a legal process by which the lender tries to recover the balance of a loan by selling the asset used as collateral for the loan. If the lender is a mortgage company and that asset is your home, you need to take care of the problem right away.

There are various ways of dealing with foreclosures, and you need an attorney who knows the options available and will help you choose the most a suitable solution.

Once a foreclosure sale takes place, it is too late to do anything. The home is lost. Make sure you act before it is too late. The filing of a bankruptcy case will stop the foreclosure of your real estate.

– A Chapter 7 bankruptcy may only postpone the foreclosure temporarily.

– A Chapter 13 will stop the foreclosure indefinitely as long as you start fresh by making payments to the mortgage company and payments to the Chapter 13 trustee.

– The Chapter 13 plan payment will allow you to bring current all mortgage arrearages over a three- to five-year period.

Pat Forte is an attorney in Antioch. Contact him at (925) 757-3328.

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