When you are unable to continue to make payments on your mortgage, it is important to understand what will happen if your mortgage is foreclosed upon. And how a Nebraska foreclosure lawyer can help you stop it.
The Nebraska Trust Deeds Act is the statute that governs foreclosures in this state. Under this statute, foreclosure is a non-judicial remedy. The deed of trust, which secures the title to the property, is transferred to the foreclosing entity in a power of sale. This is a faster method to carry out a foreclosure on a property, as it does not contain a right to redemption. For this reason, it is the primary route for foreclosure. Nebraska also has judicial foreclosures, which allows mortgages that serve as liens on real property to be foreclosed through the courts. This method allows for a right to redemption and takes longer to put into effect.
Non-judicial foreclosures require notice to be given once a default has occurred. The trust deed generally contains a power of sale clause which allows a trustee to sell the property in order to pay off the defaulted loan. The trustee is a representative of the lender and must meet very stringent notice requirements.
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How Bankruptcy Can Stop a Foreclosure
A Foreclosure by Sale ends in the posting of a sign advertising the auction of your home on the sale date. The only ways to stop a foreclosure are full payment of the arrearage or the filing of a Chapter 13 bankruptcy.
- Full Payment: If you are able to obtain and tender the full amount of your arrearage, including fees and costs, you can stop the foreclosure of a standard residential mortgage.
- Chapter 13 Bankruptcy: Most people lack the money to make full payment. This process stops the foreclosure and allows you to repay your arrearage over a three-to-five-year period. The arrearage is paid through a court-appointed official, while you resume your regular monthly payments to the bank in order to keep your home. A Chapter 13 can be filed at any time prior to the law day or sale date, and it is often the only avenue to save your home.
What You Need To Know About Foreclosure
Foreclosure is the legal proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner's failure to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust." Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, it is typically said that "the lender has foreclosed its mortgage or lien."
Don't Panic, Our Foreclosure Lawyer Can Help!
If you are in foreclosure and want to save your home, you must act quickly. With the right foreclosure attorney on your side we may be able to save your home. To schedule an initial consultation contact Steffens Law Office, P.C. today!