Mobile, AL Bankruptcy Law Firm Helps Clients Facing Foreclosure

Alabama Bankruptcy Lawyers Focus on Avoiding Foreclosure

Generally, after a homeowner fails to make a certain number of mortgage or rent payments, the lender or landlord has the option of initiating foreclosure and eviction proceedings. If you are not able to become current with your outstanding mortgage, the property will be sold at a foreclosure sale and you will be evicted from the property after a certain length of time.

Prior to the foreclosure sale and eviction, you might be able to take steps to prevent the process by communicating with your lender to set up a payment schedule to pay off your outstanding balance, exploring government aid that might be available to assist you, or filing for bankruptcy, which will stop or stay a foreclosure and eviction proceeding temporarily while the automatic stay is in place.

The CARES Act and Foreclosure

To deal with the financial uncertainty caused by the COVID-19 pandemic, the U.S. Congress passed the CARES Act, which among other things, protects homeowners holding federally-backed mortgages from foreclosure. The CARES act provides three important for homeowners affected by the pandemic:

• A forbearance period pausing monthly payments for up to one year
• A bar against late fees or negative credit reporting for those in forbearance
• A moratorium on sheriff sales and enforcing foreclosure judgments

To obtain the mortgage forbearance, you must make the request directly to your lender but will not be required to provide any proof of financial hardship. Depending upon how hard you have been hit by the pandemic, you can request as little as three months forbearance up to an entire year. It is important to note that the CARES Act does not excuse or cancel your mortgage payments – it only excuses your obligation to make the payments during the forbearance period.

Contact a Competent Mobile, Alabama Bankruptcy Law Firm

Are you facing foreclosure? Contact the experienced bankruptcy lawyers Bond and Botes, P.C. online or call 1-877-581-3396 to discuss your options today.