Determining the best way to stop home foreclosure can be confusing. You may have heard of alternatives such as short sales, foreclosure defense, mortgage modifications and Chapter 13 bankruptcy. However, you should not take any steps without discussing the tax and other consequences with an experienced attorney.
I'm Joel Gross, a bankruptcy lawyer in Clermont, Florida. If you are behind on your house payments and facing foreclosure, I offer a free initial consultation to evaluate your situation and discuss your options.
If you are behind on your mortgage payments, don't hide from it. The best thing you can do is call your bank as early as you can. If you let the bank know what his happening, you may be able to negotiate a plan to fix the problem, such as putting missed payments on the back end of your loan.
If you have too many missed payments, your best option may be Chapter 13 bankruptcy. Chapter 13 bankruptcy allows you to place your arrearages into a payment plan where you can pay it off over a three- to five-year period.
If you are not yet behind on your mortgage payments, Chapter 7 bankruptcy may be an option. In Chapter 7 bankruptcy, you can discharge debt and temporarily stop a home foreclosure. However, the bank can still foreclose on your home if you don't keep up on the payments.
You should avoid foreclosure alternatives that offer only a temporary solution to your mortgage debt problem. Foreclosure defense services can put off foreclosure for a few months in exchange for monthly fees. However, the mortgage debt problem doesn't go way.
You should be wary of options such as short sales, which only benefit the closing agent and realtor. If you do a short sale on an investment property, the mortgage company will send you a 1099 for the cancellation of debt. The IRS views cancellation of debt as income. By filing bankruptcy, you can discharge debt without creating a tax consequence.
To schedule a no-cost and no-obligation consultation with me, attorney Joel Gross, call 352-536-6288 or send an email. Evening and weekend appointments are offered for those who cannot meet during business hours. Spanish-speaking service is available.
The Law Office of Joel L. Gross is a debt relief agency that helps people file for bankruptcy relief under the Bankruptcy Code.