Are you behind on paying your mortgage? Are you currently facing the possibility of filing for bankruptcy? Bankruptcy can help you keep your home and forgive your debts. If you’re an Oklahoma resident whose underwater in your home, contact our bankruptcy law office to speak with our foreclosure attorneys. You can get debt relief and possibly keep your home. It is also possible you may get debt gorgiveness in another option.
Most of our clients file chapter 7 or chapter 13 bankruptcy when faced with foreclosure. We can review your current financial situation and provide you with sound legal advice regarding your debt relief options. Call (918)743-2233 or fill out this form to speak with a foreclosure attorney Tulsa today.
Foreclosure and Chapter 7 Bankruptcy:
When you file a chapter 7 bankruptcy, you can keep your home as long as you are current on your mortgage payment. People who lose their home during a chapter 7 bankruptcy are usually underwater and seek to have the mortgage debt discharged, or they have equity in the home which is used by the bankruptcy trustee to pay unsecured creditors (debtors can save their home under special homestead exemptions).
Upon filing chapter 7 bankruptcy, an automatic stay enacts to prevent any of your creditors from collecting pre-existing debts. This includes any mortgage arrears you may owe. A chapter 7 bankruptcy will delay the foreclosure process for a short period of time. During this time, a mortgage lender can file a motion with the bankruptcy court requesting for the automatic stay to be lifted so that the mortgage lender can proceed with the foreclosure. If you do not pay the arrears owed to the mortgage lender within due time, the foreclosure process will continue.
Note, the foreclosure process is separate from the bankruptcy process. As mentioned above, you may be able to save your home from sale when you file a chapter 7 bankruptcy. However, this does not protect you from the foreclosure process which occurs outside the bankruptcy court. Henceforth, a chapter 7 bankruptcy will not save your home from the foreclosure process. It will provide you with more time to pay any mortgage arrears owed.
Foreclosure and Chapter 13 Bankruptcy:
Unlike a chapter 7 bankruptcy, filing a chapter 13 bankruptcy may help you save your home. If you are current on your mortgage payment, you can keep your home. If you are behind on your mortgage payment, or undergoing foreclosure, you may be able to keep your home as a result of the chapter 13 repayment plan. The plan will allow you to pay on your mortgage arrears over a designated period of time (this usually last 3-5 years). You must continue to make timely mortgage payments from the date your chapter 13 petition files.
If you do not wish to keep your home and stop making mortgage payments all together, then the lender will eventually file a motion for relief from the automatic stay to continue the foreclosure process.
Oklahoma Foreclosure Types:
In Oklahoma, there are two types of foreclosures a lender may implement: 1) Non-judicial Foreclosure or, 2) A Judicial Foreclosure. Non-judicial foreclosures are common tools throughout the state for most lenders.
The judicial foreclosure process involves filing a lawsuit to obtain a court order to initiate the foreclosure process. It is used when there is no power of sale clause present in the mortgage or deed of trust.
A non-judicial foreclosure can occur if there is a power-of-sale clause in the deed of trust that secures the mortgage loan by giving the trustee the authority to sell the home to pay off the loan balance at the request of the lender if the borrower defaults (fails to make payments).
Experienced Foreclosure Attorneys in Tulsa Will Help You:
Foreclosure is hard but it can be simpler. There are options available to you. From saving the house in a chapter 13 on to getting the debt forgiven you can get through it. Our bankruptcy and foreclosure attorneys care about you and will fight to help you.