My Home is in Foreclosure. How Can I Save it?

November 1, 2021 | By Steffens Law Office
My Home is in Foreclosure. How Can I Save it?

Are you behind on mortgage payments? Are you in or facing a foreclosure and at risk of losing your home? There are two main options to save your finances: a Chapter 13 bankruptcy or a Chapter 7 bankruptcy, and our experienced Nebraska bankruptcy attorneys are here to help you decide which option is best for you.

How Filing a Chapter 13 Bankruptcy in Nebraska Can Help Save Your Home From Foreclosure

A Chapter 13 Bankruptcy will help you save your home, if you can afford to do so.

  1. It allows you to catch up on mortgage payments in 36 – 60 months.
  2. In a Chapter 13 Bankruptcy, you still have to pay the current monthly payments. But once you’re working with us, we’ll make sure to include the past due mortgage payments in the bankruptcy payments so that you’ll have a more achievable monthly payment to catch up on your home!

save home from foreclosure with bankruptcy in NebraskaHow a Chapter 7 Bankruptcy in Nebraska Can Help Save Your Home

According to our Nebraska bankuptcy attorneys, a Chapter 7 Bankruptcy requires you to surrender your home to the creditor if you can’t afford to make the mortgage payments plus any additional payments. It’s a hard decision, but ultimately a Chapter 7 could put you and your family in a safer financial position.

  1. As scary as surrendering your home might sound, it can actually allow you to get a fresh start and move on with your future. Releasing yourself from burdensome monthly payments could help you achieve financial freedom.
  2. Remember that, while upsetting, surrendering your home in bankruptcy can be the wiser choice. You can even live in it, without making the payments, until the bank finishes the long foreclosure process.  You won’t be responsible for repairs, payments, or taxes!
  3.  When your bank sells your home, the good news is that they cannot come after you for any difference between the loan balance and the sale price.

But Wait ... There May Be Another Option

Still unsure which is the best choice? There is another option. If you still happen to have some equity in your home, but cannot afford to continue making payments or catch up, you could always consider selling your home yourself and setting money aside in a separate account to purchase another home (as long as you set aside $60,000 or less after sales costs). You could also use that money to settle debts with other creditors.

Contact Our Nebraska Bankruptcy Attorneys if Your Home is in Foreclosure

Deciding what to do in a home foreclosure situation is challenging – but you do have options. Contact our Nebraska bankruptcy attorneys at Steffens Law, by filing out our contact form online or by calling (308) 872-8327, to our experienced attorneys will help you decide which option is best for you!