Avoiding Foreclosure in Topeka, KS

by | Feb 6, 2016 | Lawyers

Kansas consumers could lose their home due to the foreclosure process. Through this process, their lender takes legal action to seize the property and resell it. An attorney could help these consumers avoid foreclosure in Topeka, KS, through a carefully devised plan.

Could a Modification Stop Foreclosure?

A loan modification is possible if the consumer made timely payments prior to the last three months. If they have this history with the lender, the lender is more likely to offer a modification to place the delinquent payments at the end of the loan and refinance it.

An attorney could push for a modification based on predatory loan practices. The attorney identifies these terms and demands that the lender changes them. These practices are illegal and could lead to further litigation against the lender.

How delinquent is the Account?

In most instances, the lender cannot start the foreclosure process unless the loan is at least 90 days delinquent. However, if the terms of the loan indicate that action can be taken with one or two missed payments, the consumer could lose their property. An evaluation of the terms with an attorney determines the number of missed payments that indicate delinquency.

Does the Borrower Qualify for Bankruptcy?

The consumer could file for bankruptcy if they possess an income that is greater than the average per household in his or her area. With this status, they would qualify for Chapter 13. This chapter provides a more extended automatic stay to prevent foreclosure. However, if they don’t have this income level, they’ll need to file for Chapter 7. In these bankruptcy cases, they must possess adequate assets.

What Chapter is the Right Choice?

The right choice depends on the person’s income level and the benefits of the bankruptcy. They must qualify before they can file a claim. They must also evaluate the terms to determine if the chapter could present further hardships.

Kansas consumers avoid foreclosure through several beneficial tactics, which could include negotiations with the lender or through a bankruptcy claim. The attorney evaluates the consumer’s finances and identifies the most amicable solution. Consumers who are involved in Foreclosure in Topeka, KS, should visit this website today for more information.

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