In Kansas, foreclosures are started by mortgage lenders after a borrower has defaulted on their mortgage loan. The lender must notify the borrower about the impending foreclosure and provide a deadline. The notification gives the borrower enough time to take legal action or to catch up their payments. A local attorney can explain opportunities to stop Foreclosure in Lawrence KS.
Bankruptcy Stops Foreclosure
Each chapter of bankruptcy provides the borrower with an automatic stay. The feature of bankruptcy stops the foreclosure throughout the full duration of the selected bankruptcy chapter. However, during the bankruptcy, the borrower must catch up all overdue balances. If the borrower doesn’t bring the account to current, the foreclosure process restarts.
Mortgage Modifications or Forbearance
Mortgage modifications are available to lower interest rates and reorganize payments. The attorney could negotiate the terms of the mortgage modification. Typically, overdue payments are adjusted to the end of the mortgage. The interest rates are examined to determine if a lower rate is available for the borrower. The payments are reduced according to what is affordable for the borrower. A forbearance, on the other hand, stops the payments temporarily.
Quick Real Estate Sales
A quick sale is used to sell the property quickly and settle the debt. The property is listed through a real estate agency that appraises the property quickly and advertises it. The agent presents the property to investors who are looking to make a purchase fast. The selling price is typically lower than the full mortgage value.
Purchasing the Property Through an Auction
The borrower has the option to purchase their property through an auction. The opportunity allows them to buy the property outright for a lower price. However, any leftover balance that isn’t paid off is still the responsibility of the borrower, but the lender cannot seize the property.
In Kansas, the foreclosure process could leave borrowers homeless if they don’t act quickly. The borrowers have a small window of time to prevent the process and save their home. Several options are available to stop a foreclosure, but the borrowers should review their options completely. Borrowers who need legal advice about Foreclosure in Lawrence KS can visit Website Domain for more information now.