If you receive a notice of foreclosure and you want to stay in your home, it’s important to act quickly. Following the standard non-judicial foreclosure process in Tennessee, the mortgage company must provide notice of the foreclosure in a local newspaper at least three times and at least twenty days prior to the foreclosure date. The mortgage company must also notify you of the foreclosure at least twenty days prior to the foreclosure date.
Don’t make the mistake of waiting too long to get help. Once the foreclosure sale has taken place, it is nearly impossible to reverse that foreclosure. If you want to stay in your home and try to work with the mortgage company, your best course of action may be to proactively file a Chapter 13 bankruptcy.
Protecting Your Nashville Home from Foreclosure
Once your bankruptcy case is filed, the “automatic stay” goes into effect. The automatic stay is basically a shield that protects your assets, including your home, from creditors. Generally, a Chapter 13 repayment plan will include the amount you are behind on your mortgage plus the ongoing mortgage payment. As long as you make your payments according to your plan, your home is safe from foreclosure. How do you come up with a payment plan? During your free consultation with our office, your foreclosure attorney will help you calculate an affordable payment that will satisfy your creditors and leave you money to pay your monthly living expenses such as utilities, gas, and groceries.
A Chapter 13 repayment plan normally lasts between 3 and 5 years. At the end of your Chapter 13 plan, the Court will declare that your mortgage is current, and you will resume making mortgage payments directly to your mortgage provider.
It is a common misconception that Chapter 13 will reduce your monthly mortgage payment. Though a Chapter 13 may help you reduce your contract interest rate and even the principal amount owed on cars, furniture, and other secured items, a Chapter 13 bankruptcy does not adjust your mortgage contract.
However, if you are struggling to make your monthly mortgage payments, we have many clients who have successfully reduced their payments by working with their mortgage company directly from within the safety of their bankruptcy. This process is regulated by the Bankruptcy Court, which keeps all parties accountable; therefore, you are not at risk of falling further behind on your mortgage as you modify your loan.
Middle Tennessee Foreclosure Attorneys
If you’re facing foreclosure in Middle Tennessee (Nashville, Murfreesboro, Columbia, and the surrounding areas), you’re not alone. Every year, our office helps hundreds of people file for Chapter 13 bankruptcy for the purpose of putting a stop to their foreclosure. Chapter 13 helps these families stay in their home and repay their debts at a rate they can afford.
Filing for bankruptcy may sound like a frightening step, but it may be a much better option than losing your home to foreclosure. A foreclosure can severely damage your credit, whereas a Chapter 13 bankruptcy can put you back on track to rebuilding your credit.
Remember, if you have received a notice of foreclosure, you must act quickly. Call our office today to schedule a free consultation with one of our experienced Tennessee foreclosure attorneys. During your free consultation, your attorney will answer your questions and give you all the info you need to make the right choice for your family.