Falling behind on your mortgage is always a stressful experience, especially if the bank has already started foreclosure proceedings. While you may decide that maintaining your home is no longer worth the expense, there are also ways to slow down or stop the process entirely. Here are a few options to consider.

What to Do After Receiving a Foreclosure Notice

1. Read the Documentation Carefully

The paperwork you originally received from the bank should include options for making up arrears and potentially keeping your home. This might consist of renegotiating the terms of the mortgage or paying back the overdue amount in installments. The letters may also contain a timeline of the process, which should help you understand how much time you have.

2. Contact the Lender

Mortgage lenders would rather work with struggling borrowers than seize and sell their property. Depending on the circumstances, you may be able to refinance the loan or renegotiate the mortgage terms. The lender may also agree to temporarily suspend payments until your financial situation has stabilized or allow you to make up past due amounts later.

3. Consider Filing for Bankruptcy

Chapter 13 bankruptcy helps borrowers with secured debts make up missed payments. Filing a bankruptcy petition also triggers an automatic stay, which immediately stops foreclosures and other collection activity. Once you’ve completed the court-managed payment plan, your account will be current and the lender won’t be able to seize the property.

While filing for Chapter 7 bankruptcy won’t stop a foreclosure, the automatic stay will delay the proceedings until the end of your case. This can buy you valuable time for negotiating with the lender or arranging a new living situation.

If you’re facing foreclosure, the bankruptcy attorneys at Brian R. Cahn & Associates, LLC, will help identify your options and make determine which choice is right for you. Their attorneys have been providing affordable debt relief services to borrowers throughout northwest Georgia since 1991, and they're dedicated to helping you get the second chance you deserve. Visit their website or Facebook to learn more about their services, and call (770) 382-8900 to arrange a free consultation today.