Common Problems: Foreclosure

Once a person gets sufficiently behind on mortgage payments, the mortgage holder will likely start foreclosure proceedings.  After foreclosure proceedings are started, the mortgage company usually will not accept any payment less than the full amount needed to bring the loan current. Those faced with a foreclosure often look to the court-supervised repayment plan of a Chapter 13 bankruptcy to allow them to force the mortgage company to accept a repayment plan to catch up the mortgage arrearages over a three to five year period.  The filing of a Chapter 13 bankruptcy will stop a pending foreclosure sale under all but very limited circumstances.