Experienced Keizer Oregon foreclosure attorneys can help individuals stave off foreclosure with legal strategies.  

Impact of bankruptcy in Keizer Oregon.  

Bankruptcy may be an option to stave off foreclosure. If an individual files for bankruptcy before a foreclosure action is initiated, an automatic stay may prevent the foreclosure from moving forward.  Chapter 7 may delay a foreclosure for months and Chapter 13 may allow individuals to save their homes.  Experienced legal professionals can be of assistance in utilizing bankruptcy to positively influence a foreclosure action.  

Homestead exemption.

Many states have homestead exemptions that protect the home in which a family lives from being sold to satisfy debts held by judgment creditors. These exemptions do not protect from foreclosure by a mortgage holder, or the trustee, under a deed, or trust where the home secures a loan for the purchase money.    

Keizer Oregon Foreclosure.

The foreclosure process begins when a borrower/homeowner defaults on loan payments for a mortgage, and the lender files a public notice of default which is called a Notice of Default, or Lis Pendens.  Individuals should speak with a Oregon foreclosure attorney who may offer legal alternatives to foreclosure actions, based on state laws and the financial position of a homeowner.  

Judicial foreclosures. A judicial foreclosure (28 USC § 2410) goes through the court system and may move more slowly than a non-judicial foreclosure.  Benefits to homeowners include time to  seek legal counsel and devise a strategy to oppose the foreclosure process.  Judicial foreclosures can last from months to years, depending on the state where the foreclosure action is filed.  The mortgage servicer must wait until a borrower is at least four months delinquent on payments to begin action, by notifying a homeowner and filing a lawsuit  in the county where a property is  located.  The petition for foreclosure will outline reasons for foreclosure for a judge to sign off.  A Oregon foreclosure attorney can help with a defense that justifies the payment delinquency.  

Non-judicial foreclosures.  Non-judicial foreclosure (26 USC § 7425(b)) actions often proceed faster than judicial foreclosures and can be completed within months. The majority of states allow non-judicial foreclosures, that usually start when the lender’s trustee records a notice of default at the county recorder’s office. The notice of default is mailed to the borrower in most cases, and may offer a chance to cure the default before the foreclosure sale can be held. 

Foreclosure common outcomes.

  1. The homeowner/borrower pays off the default amount during a grace period specified by state law, known as pre-foreclosure and reinstates the loan.
  2. The  homeowner/borrower sells the property to a third party during the pre-foreclosure period and the proceeds are used to pay off the loan.
  3. The home is sold to a third party at a public auction at the end of the pre-foreclosure period.
  4. The lender takes ownership of the property with the intent to sell it, either by agreement with the homeowner/borrower during pre-foreclosure through a short sale foreclosure, or through purchase at the public auction.  

Sources.

https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics

https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-13-bankruptcy-basics

26 USC § 7425(b)

28 USC § 2410

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