Foreclosure Lawyers in Gilford NH and Gilford Bankruptcy Attorneys
Foreclosure is the legal action by a mortgage holder to recover the amount of money owed on a loan by taking ownership of a property and selling it. Foreclosure actions can move swiftly, or be dragged out for years in some cases. When a homeowner utilizes the services of an experienced foreclosure attorney in Gilford New Hampshire, they may exercise legal options to save their home, or delay its sale.
Impact of bankruptcy in Gilford NH.
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. That can give the homeowner some time to save money to pay off debts, or prevent a foreclosure from happening. Chapter 7 bankruptcy in Gilford NH may delay a foreclosure for months and Chapter 13 bankruptcy in Gilford NH may allow individuals to save their homes. Experienced foreclosure attorneys in Gilford NH and bankruptcy attorneys in Gilford can be of assistance in utilizing bankruptcy to positively influence a foreclosure action.
Gilford NH 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, but 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.
A homestead exemption will impact the way funds are disbursed after a foreclosure action is finalized, whereby legal fees will be paid, then mortgage balances to lenders, then residual funds will be distributed to homeowners to the extent of a homestead exemption and then made available to creditors who have verified judgments. It is always best to speak with a foreclosure attorney in Gilford NH and how homestead exemptions impact the distribution of funds.
When a person buys a home with the assistance of a lender who holds a mortgage on the property, they give them certain rights against the property to secure their financial interests. If a person stops paying the mortgage, the house can be sold without consent because the lender is exercising their right to use the secured interest in the physical property to recoup the funds loaned to individuals.
Foreclosure Lawyers in Gilford NH.
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.
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 based on a variety of laws, depending on each unique case. A foreclosure will not happen unless a judge signs off on it, so it is wise to seek legal counsel who can help with this. In some situations, successful repayment plans can be made to get a homeowner back on track.
Judicial foreclosures can last from months to years, depending on the state where the 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 homeowner usually has thirty days to cure the default. A foreclosure action will move forward requesting the home sale to pay the debt when they cannot. The petition for foreclosure will state reasons for foreclosure for a judge to sign off. A foreclosure attorney in Gilford NH can help with a defense that justifies the payment delinquency. If a foreclosing party gets a judgment to sell the house for less than what is owed, they may be entitled to a deficiency judgment and a homeowner will have to pay the difference between the sale amount and the mortgage balance.
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, so it is important to speak with a foreclosure attorney in Gilford NH who understands state foreclosure laws to see if there is a way to reply to keep a property from being sold. Non-judicial foreclosure usually starts 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. If the owner cannot cure the default in a designated period of time, a foreclosure sale will be set and the trustee will prepare a notice of sale. A homeowner may be able to stop a foreclosure sale from taking place during the right of redemption period by paying off the mortgage debt, or through a repurchase of the property after a foreclosure sale. Depending on state laws, a homeowner may be able to exercise a right to redeem before, or after a foreclosure sale.
Common outcomes of foreclosure actions include:
- The homeowner/borrower pays off the default amount during a grace period specified by state law, known as pre-foreclosure and reinstates the loan.
- 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 and avoid foreclosure on a credit report.
- The home is sold to a third party at a public auction at the end of the pre-foreclosure period.
- 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.
If a homeowner is facing impending foreclosure action and wants to find a means to defend their rights to a property, it is best to speak with an experienced foreclosure attorney in Gilford New Hampshire, who may be able to assist with legal alternatives to the foreclosure action, based on the state laws and the financial position of a homeowner.
26 USC § 7425(b)
28 USC § 2410
Also read our Foreclusure article: https://bankruptcy-lawyers.usattorneys.com/new-hampshire/gilford/