No one will ever say that they enjoy going through the foreclosure experience.
However, some will be able to say that they made it to the other side without losing their home.
Trying to avoid or stop foreclosure Vegas is no easy task, but it is entirely possible.
You have a few different options to consider and the best solution will depend entirely on your circumstances. Here are some of those methods.
Method 1: Foreclosure Mediation Program
Vegas was one of the cities hit the hardest by the last recession. It had a significant impact on the real estate market.
For a while, there were hundreds of homes receiving foreclosure notices every month.
That number has recently dwindled down significantly to around 30. One of the big reasons for this is the enactment of new legislation regarding foreclosures.
One such piece of legislation was the foreclosure mediation program. This is a statewide program that is available for a very modest fee.
It connects homeowners with a bankruptcy attorney and allows them to negotiate with the lender and the lender’s attorney in person.
This new program also requires that lenders produce original copies of the mortgage agreement and the deed.
Demanding such documents in the past would have required suing the lender, which could have cost thousands of dollars.
The best part about the foreclosure mediation program is that lenders have incentives to postpone and stop foreclosures.
This incentive comes in the form of additional fees that accumulate during the negotiations.
If negotiations are successful, then you’ll wind up paying more down the road, but you’ll have kept your home.
Method 2: Filing Bankruptcy
Filing for Chapter 13 bankruptcy is a drastic choice, but it may be the only option left available.
This particular type of bankruptcy will provide you with an opportunity to meet with your creditors and arrange a plan for repayment.
Your mortgage lender will be among those creditors. Once you have all agreed upon a repayment plan it’s up to you to stick with the plan to avoid foreclosure in the future.
There are certainly some consequences to filing for bankruptcy. Most notably is the significant impact it will have on your credit score.
It will be extremely difficult to secure loans or credit for many years in the future. It’s important that you file for Chapter 13 rather than Chapter 7.
A Chapter 7 bankruptcy will place an “automatic stay” against the bank supplying the mortgage.
That bank will eventually be granted relief from the automatic stay and the foreclosure process will resume.
At most, you will have bought yourself a little bit of time, but will not have stopped the foreclosure.
Choosing To Stop Foreclosure Vegas
The best option is to speak with a bankruptcy attorney who can help you utilize the Vegas foreclosure mediation program.
That attorney should also be able to advise you regarding whether or not filing Chapter 13 bankruptcy is a reliable alternative.
In either situation, have the assistance of a trained professional will make a huge difference.