Options for Avoiding Foreclosure in St. Paul MN

Homeowners who are unable to make their mortgage payments are at risk of foreclosure. If you think you may not be able to make one or more payments on time, it is important to inform your mortgage company and make arrangements to make up the overdue balance. Your lender is likely to be understanding and try to work out an agreement with you if you keep in touch with them. Visit website for more information.

Mortgage companies understand that your property is more profitable to them if you are living in it and making payments than if they have to file for Foreclosure in St. Paul MN. However, if you don’t contact your lender and explain your temporary financial situation, they will have no choice but to schedule a sheriff’s sale. The sale usually takes place about four weeks from the date it is scheduled.

If you want to keep your home and are unable to work out a suitable arrangement with your mortgage company, you need to talk to a lawyer before the sheriff’s sale. Homeowner’s who have enough income to catch up on their payments over an extended period of time may be able to keep their property by filing for Chapter 13 bankruptcy.

By filing for bankruptcy protection, you will halt all collection efforts against you, including the sheriff’s sale and Foreclosure in St. Paul MN. Instead of your home being sold to the lender or another person at an auction, you can retain the title to your property and decide whether you want to sell it or make a payment arrangement through bankruptcy court.

Chapter 7 bankruptcy is also an option and may be a better choice if you have negative equity in your home. While you have to surrender your home to the lender, you may be able discharge the deficiency so you don’t owe thousands of dollars to your lender after they have foreclosed and taken possession of the property. There are income and asset restrictions for Chapter 7 so talk to an attorney such as Lamey Law Firm of St. Paul MN about whether you qualify for this option.

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