If you are struggling with debt and maintaining your financial responsibilities, you may find that this begins to affect multiple areas of your life. You may begin to receive notices from debt collectors and phone calls from creditors. After a while, this could turn into the threat of wage garnishment, confiscation of property purchased on credit and more. If you default on your mortgage, you will eventually find yourself facing the possibility of foreclosure.
Foreclosure means the loss of your home, and if this happens, you may be unsure of how you could ever get back on your feet. After missing payments, your lender will take steps to seek payment or a recuperation of losses, and this may mean taking your home. It may be helpful for you to learn how you could combat the possibility of foreclosure and what options may be available to you as you fight to stay in your Tennessee home.
Missing payments on your home loan
One of the first things that will happen after defaulting on your home loan is that you will begin to receive notices from the lender. They will likely send a letter informing you of your late payment and any fees that will apply because of the late payment. After a second missed payment, the loan is delinquent, and the lender may decide to accelerate the load, requiring you to catch up on payments within 30 days. After 30 days, the lender may then decide to initiate foreclosure action.
If you are behind on your mortgage payments and facing the possibility of foreclosure, you may not be certain of how you could ever catch up. At this point, you may benefit from filing for Chapter 13 bankruptcy. This process will halt all foreclosure proceedings, and you will be able to remain in your home while you follow the terms of your bankruptcy plan.
The best option for your future
The thought of bankruptcy may not appeal to you, but this could offer you the most practical way to stay in your home and address your debt problem once and for all. By filing for bankruptcy protection, you will initiate the automatic stay, a protection that immediately halts all collection efforts against you. If you are struggling with your debt or have already defaulted on your mortgage, you may benefit from learning if you qualify for Chapter 13 bankruptcy.
