Will Bankruptcy Stop a Miami Foreclosure?

Fort Lauderdale Foreclosure Protection

A bankruptcy does not wipe out voluntary liens, like mortgages or tax liens. The lender still has the right to foreclose if you do not pay. A lender usually does not want the property. It wants you to pay regularly on the loan. Foreclosure is a last resort for a lender that decides it cannot get the money it is owed in any other way.

Filing a Chapter 13 bankruptcy petition can avoid foreclosure

Many times debtors file Chapter 13 bankruptcy to avoid foreclosure. Under bankruptcy laws the mortgage loan can be de-accelerated, a process that allows the homeowner to catch up on any missing payments.

To save a home from bank foreclosure law in Fort Lauderdale, and bank foreclosure law in Miami, a Chapter 13 bankruptcy petition needs to be filed before the public auction of the property. While technically the deadline is actually the filing of the Certificate of Sale by the clerk of court, since this filing occurs almost immediately after the auction, once the auction occurs it is too late to save the house through Chapter 13.

The filing of the Chapter 13 petition with a U.S. Bankruptcy Court any time before the auction stops the foreclosure.

Curing arrearages in bankruptcy

Once the Chapter 13 petition is filed, a homeowner can resume making regular mortgage payments to the mortgage holders on a home. They must accept the payments, even if they accelerated the loans. The arrearage, the total you are behind, is then paid out over the course of your Chapter 13 plan. This is usually 36 months, though it can be as long as 60 months. The arrearage amount is paid in addition to your regular mortgage amount to get you current.

These new measures protect buyers from surprise code enforcement costs after a sale, but they also may slow down the return of properties to the market. People who buy fixer-uppers to sell later have an additional cost of code compliance, but they may be able to pass that along to buyers provided it is disclosed upfront.

We can help

Contact Templer & Hirsch, P.A. today for answers to all your questions about Fort Lauderdale bank foreclosure law and Miami bank foreclosure law.