Your BFF – Your Bankruptcy ‘Fore Foreclosure (Stops Foreclosure)

What’s a BFF?

The term BFF, or Best Friends Forever, has grown to be used largely as a result of television shows (i.e. Friends), social media, and its popularity, in general, along with other acronyms of late (like LOL, SMH, etc.). BFF is used to highlight an extreme bond held between two people. Could be that they grew up together, went to the same high school, shared deep secrets or something else that connects them. Essentially, a BFF is a person that one can rely upon.

Just like a close personal friend, homeowners too can call upon a BFF to help through a rough time he or she might be facing (i.e. right before losing their home). However, this BFF isn’t a special friend per se, but a plan of action – your Bankruptcy (Be)’Fore Foreclosure. Read on to learn how this BFF can help you as a homeowner.

What is Foreclosure?

Foreclosure is your BFF’s enemy. Foreclosure starts when a homeowner falls behind on their mortgage payments (usually by +/- three months). In efforts to get loan repayment underway, the lender initiates legal steps against the homeowner to sell their property at auction. However, the lender must follow a process, which typically happens over a period of time, before the actual foreclosure occurs. After receiving foreclosure notice, the homeowner has time to try alternatives, before actually losing the property (i.e. deed in lieu of foreclosure, loan modification, short sale, etc.). In the event alternate options are unsuccessful, it’s then probably a good time to employ your BFF, which could possibly stall or avoid foreclosure altogether.

Your BFF’s Friend – The Automatic Stay (“The Blocker”)

Your BFF has some very strong connections when called upon. Your BFF goes to battle immediately on your behalf, by using a crucial tool in its arsenal called the Automatic Stay (or order for relief). When you file a Chapter 7 or 13 (bankruptcy before foreclosure), the court automatically issues a “stay,” or order, which in essence lowers an iron curtain, thereby blocking and/or directing your creditors to cease their collection efforts immediately. After your BFF steps in, if your home was slated for an actual foreclosure sale date, the sale would need to be legally postponed for three to four months. Nevertheless, not to get too excited, your BFF’s friend’s power could be limited, if your lender can prove that either something was fishy with your filing or if the foreclosure notice was filed, in advance, and your notice period timely expired, thereby allowing the lender to file a motion to lift your stay.

If you are worried, after receiving a notice of foreclosure, contact REFUGE Law to see if we can look for options or employ your BFF to alleviate foreclosure concerns. Make an appointment to speak with one of our experienced bankruptcy attorneys. Bankruptcy can help give you relief from your financial worries. Call us today at (404) 618-2733 in Georgia, (713) 570-6377 in Texas, to discuss.

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