Saving Homes in Omaha and Across Nebraska
When you fall seriously behind on your mortgage payments, you may understandably be worried about losing your home. If you receive a Notice of Default, you will need to act quickly and decisively to avoid foreclosure.
Our Lincoln based foreclosure lawyer is ready to help you leverage bankruptcy to protect your home and bring your mortgage current. At Lentz Law, we are compassionate to the financial difficulties you are experiencing and are committed to providing the experienced guidance you need to secure relief. Get the no-judgment representation you deserve and take the first step toward a future free of overwhelming debt.
The good news is your lender cannot foreclose your home as soon as you miss a mortgage payment. Under federal law, a lender cannot in most cases even initiate the foreclosure process until you are at least 120 days behind on payments.
Your lender is also required to call you to discuss potential loss mitigation strategies, including loan modifications or repayment plans, soon after you start missing payments. If any of these plans are feasible, you should consider negotiating and implementing them.
After at least 120 days have passed from the date of your first missed payment, your lender may start the foreclosure process. Most foreclosures in Nebraska are nonjudicial, meaning they only minimally involve the courts. This is bad news for you, as these foreclosures tend to be more expedient. Still, you will have plenty of time to respond and consider all available foreclosure avoidance options, including bankruptcy.
You will receive a Notice of Default from your lender explaining that your mortgage is in default. In most situations, you will have one additional month to “cure” the default and bring the mortgage current. If the land is used for farming, you may get two additional months. If you have not already done so, now is the time to contact a lawyer.
If the default has not been cured after the stated amount of time has passed, your lender will publish a Notice of Sale in local newspapers. They must do this for five consecutive weeks before a sale of your home can take place. This period is generally your last chance to stop foreclosure.
If no further action is taken, your lender will most likely sell your home at a public auction. If the winner bids less than what you still owe, you may still be on the hook for the difference. You will want to avoid this outcome at all costs, and our Lincoln foreclosure attorney is ready to assist at any stage of the foreclosure process.
He was there when I needed him through my tough times over the past few years.Tonia A.
In a grand majority of cases, you will have at least six months from the date you missed your first mortgage payment before your home is sold at auction. If you are confident you cannot catch up on payments without outside assistance but wish to save your home, it may be time to consider bankruptcy.
When you file for bankruptcy, you will be immediately protected by the automatic stay. This court order stops all collection actions, including foreclosure. This means that your lender will not be able to continue with the foreclosure process once you file. So long as you file for bankruptcy before the scheduled date of the public auction, you can stop the foreclosure sale.
Chapter 13 bankruptcy is typically the best choice for people who want to keep their homes. Filing involves proposing and committing to a reorganization plan. You will need to use available disposable income to repay some of your outstanding debts over a period of 3 to 5 years.
Certain debts, including missed mortgage payments, receive “priority” over unsecured debts. In fact, you must bring your mortgage current over the course of the plan. This can work in your favor, as you can put more of your plan payment toward your mortgage versus debts you will ultimately be able to discharge.
Keep in mind that, in many cases, the automatic stay will remain in effect throughout your Chapter 13 bankruptcy so long as you keep up with plan payments. This means that your home will be protected from foreclosure for as many as 5 years.
Once you have completed all Chapter 13 plan payments, you will often be permitted to discharge any remaining unsecured debts, including credit card debt, medical bills, unpaid utility bills, and personal loans. This relief can give you the enhanced financial flexibility and resources you need to manage your mortgage payments.
Our Lincoln foreclosure lawyer is committed to helping you save your home, and our team at Lentz Law can walk you through what your Chapter 13 repayment plan might look like. We understand the stress and uncertainty you are likely experiencing and welcome the opportunity to help you overcome this difficult moment.