Many people this year are struggling to have happy holidays because they can’t pay important bills, including their mortgage. If you fall behind on your mortgage, you risk foreclosure, a legal process which causes you to lose your home. Fortunately, experienced foreclosure defense attorneys such as the Law Offices of David Kohm can help you protect yourself against losing your home this holiday season.
The Mortgage Paper Trail Defense
One of the most common defenses your Arlington foreclosure attorney may use is questioning who actually owns your mortgage. Under Texas law, only the entity that owns your deed has the right to declare a foreclosure. However, many companies sell and resell the mortgage, making it unclear who the actual owner of the mortgage is.
In this type of situation, your attorney may be able to halt foreclosure proceedings by challenging the mortgage holder’s right to foreclose. The courts will have to trace the paper trail and ensure that the mortgage holder owns the mortgage and the deed to your home. If the mortgage holder does not own both of these items, the case will be dismissed because there is a failure in authority to foreclose.
Bankruptcy and Foreclosure
If the mortgage holder legitimately has the right to foreclose, you might want to consider bankruptcy. Declaring bankruptcy can help you save your home in a couple of different ways:
- When you file bankruptcy, the bank declares an automatic stay, which means that your creditors can’t take collection action until the bankruptcy is resolved. Thus, your mortgage owner is temporarily barred from foreclosing on your home. This gives you time to get the problem resolved.
- In many cases, you can’t get rid of a mortgage via Chapter 7 bankruptcy. However, by wiping out other debts, you can more easily afford to pay your mortgage.
- You can set up a structured repayment plan via Chapter 13 bankruptcy that allows you to repay mortgage arrears and ends the threat of foreclosure.
Defending yourself against foreclosure can be complicated, which is why you need an experienced attorney to help you. Contact the Law Offices of David Kohm at 817-204-0900 to schedule a consultation about your foreclosure.