Published On: May 30, 2017

Last Updated: December 4, 2023

Can’t pay your mortgage?  Wondering, “what now?” The good news is that there is a way to save your home and help get you out of debt, but timing is everything.

Defaulting on Mortgage Home Loan

When a mortgage loan is established, it basically means that the buyer agrees to pay back the lender within a determined time and for a specific cost.  When payment is not made, the lender has procedures to handle the situation.  Most mortgage lenders have some sort of “grace period.”   Even if you’re payment is late, if it arrives within the grace period, you may avoid a late fee.  However, if you have not attempted to contact the lender to negotiate payment and the grace period has expired, the lender will assume that your mortgage is “in default.”  They will make attempts to contact you, and to collect.  If these attempts are unsuccessful, the lender will begin the foreclosure process.

A mortgage loan is considered a “secured debt,” meaning that the lender can ultimately take back your property if the loan goes into default.  File for Chapter 13 bankruptcy to save your home.

Home Foreclosure Facts

  • A foreclosure is started when a summons and complaint is filed by request of your lender.
  • Charges to your account continue, even after it has been deemed as “in-default.” Your mortgage company may charge for property inspections, property preservation services, legal fees, postage, etc.
  • The longer the mortgage is in default, the more difficult and expensive it becomes to bring the account current.
  • The bank may serve an eviction noticecannot take possession of your home until Foreclosure is complete.
  • You have a limited number of days to dispute information you have been served.
  • Contact a bankruptcy lawyer as soon as possible to discuss how to stop the foreclosure from proceeding, and save your home.
  • If you want to take advantage of a Chapter 13 bankruptcy, it must be done before the mortgage company sells your home.
  • All foreclosures must through a court.
  • There is a redemption period is the minimum amount of time you have in the home before the house is sold by auction.
  • If your property forecloses, it is public record.
  • Foreclosure will have a negative impact on credit score making it difficult to get loans in future.

Visit the Foreclosure Resource Center for answers to more of your questions.

In fact, for those struggling with mortgage debt, understanding your options can be critical. Debt Advisors have comprehensive resources available, such as insights on mortgage delinquencies in Wisconsin and the latest regulatory changes that reduce foreclosure threats. Our goal is to ensure homeowners are informed and can make the best decisions possible. Before taking any drastic steps, it’s always recommended to consult with a Wisconsin bankruptcy attorney that can help prevent foreclosure.

The longer you wait to do something, the fewer options you may have. Don’t fall victim to mortgage relief scams or home rescue scams. Talk to an experienced bankruptcy attorney today at Debt Advisors Law Offices in Oshkosh. The consultation is free.

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Learn about bankruptcy protections, types of bankruptcy, how to get started, what to expect, and who to trust. Filing bankruptcy is the ONLY way to completely eliminate debt. If bankruptcy is right for you, it offers powerful protections that cannot be achieved through alternative solutions such as hardship relief, loans, or debt settlement.

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  • After I had to go on disability, I used my credit cards a lot more thinking I could pay them off when I was able to go back to work. That didn’t happen and I found myself so much worse off than I could handle. I went to Debt Advisors feeling terrible about what I had to do. Chad and everyone there were very understanding and put my mind at ease while taking such great care of me. They were there every step of the way and supported me when I was “freaking out”!! Every time I needed to contact them; their response time was amazing!! God forbid I ever need to go through this again, but I know where to turn if I need help! Debt Advisors are more than just filing bankruptcy on my behalf. They really care about what you are going through!! Thank you, Chad, Jeremy, Mike, and everyone at Debt Advisors!! I cannot tell you enough how much I appreciate all of you!! J Hammond

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