How Can I Avoid Foreclosure on my House in Indiana?

The prospect of losing one’s home to foreclosure can be a distressing and overwhelming experience. However, there are ways to navigate this challenging time and potentially avoid the loss of your home. One such option is through Chapter 7 or Chapter 13 bankruptcy, which, contrary to popular belief, can often provide a lifeline rather than a sentence of financial doom. Whitten & Whitten is here to help you explore what foreclosure entails in Indiana and how filing for bankruptcy might be a viable solution to help you retain your home. Contact our attorneys for personalized legal guidance specific to your case.

Understanding Foreclosure in Indiana

Foreclosure is a legal process initiated by a lender to recover the balance of a loan from a borrower who has ceased making payments. In Indiana, this process begins with the mortgage company reaching out to the debtor to settle the outstanding mortgage. If payments are not resumed, the company engages legal counsel to prepare a foreclosure lawsuit.

However, it is crucial to understand that even after a foreclosure lawsuit is filed, you’re not immediately required to vacate your home. The house will only go to the sheriff sale docket after the mortgage company receives a judgment against you. You will receive a notice about the impending sheriff sale 4-8 weeks prior via certified mail.

The Role of Chapter 13 Bankruptcy in Avoiding Foreclosure

Chapter 13 bankruptcy, when filed before a judge confirms the foreclosure sale, can provide protection for your real estate assets. It allows you three to five years to repay the arrearage or back debt on your mortgage through a court-approved debt repayment plan. While you are paying the arrears, you are still required to make your monthly mortgage payments on time.

In some cases, you can also modify your mortgage through Chapter 13. This modification adds the arrearages to the end of the mortgage loan. Most importantly, it often results in a reduction in the amount you must pay your mortgage company each month.

The Importance of Acting Quickly

Time is of the essence when it comes to avoiding foreclosure. Filing for bankruptcy should not be left until the last minute, and it is strongly recommended to initiate the process months before the confirmation date. Additionally, navigating the complexities of bankruptcy and foreclosure can be daunting without professional assistance.

Contact Our Attorneys to Learn Whether Chapter 13 Bankruptcy Is Right for You

Facing foreclosure is a stressful ordeal, but options like Chapter 13 bankruptcy can offer a lifeline. It is crucial to take action promptly, and seeking professional legal assistance can greatly enhance your chances of successfully navigating this process.

At Whitten & Whitten, our experienced attorneys are equipped to guide you through this challenging time. We understand that bankruptcy can be an intimidating prospect, but it can also provide a path to financial recovery and the preservation of your home. Call today, and let us help you make informed decisions to safeguard your financial future.