IF YOU HAVE FALLEN BEHIND IN YOUR MONTHLY MORTGAGE PAYMENTS AS A RESULT OF HAVING LARGE MONTHLY CREDIT CARD BILLS OR AS A RESULT OF A TEMPORARY LOSS OF INCOME FILING FOR BANKRUPTCY MAY AFFORD YOU AN OPPORTUNITY TO SAVE YOUR HOME.
Often mortgage lenders will threaten, foreclosure long before they actually begin the process. After the preliminary threatening letters have been sent the Lender may begin a proceeding in the Land Court under the Soldier's and Sailor's Relief Act followed by certified mailings, and publication in the newspaper of the date of a proposed foreclosure sale. Effective May 1, 2008 Massachusetts law requires lenders to provide homeowner's with a written notice of their intention to foreclose before they begin the process. M.G.L. Ch 244 Sec 35A. The entire foreclosure process may take a lender months to complete. However, the sooner you begin to address the pending foreclosure the more options you will have to deal with it.
In the meantime, here are some dos and don'ts that may be of help:
- Prioritize your debt payments. Pay any mortgages, or home equity lines, first and on time. Pay first mortgages first. Pay second mortgages and equity lines next. Then pay on your car loans. Always pay monthly credit card debt last. If you can't afford to pay the credit card debt, without missing a mortgage or car payment, don't!;
- Call your lender and explain to them why your situation is temporary (if it is);
- Stop using your credit cards;
- Keep your eye on the news. Congress is considering revising the bankruptcy laws in ways that will help people in over their heads to keep their homes;
- The President has signed the "Mortgage Forgiveness Debt Relief Act of 2007" which may offer assistance to some homeowners in limited situations;
- Do not give away property to family or friends;
- Do not refinance your home, or increase the amount due on your home equity line, without first seeing a lawyer and reviewing your overall situation;
- Do not withdrawn money, or borrow against, any retirement funds you may hold without first seeing a lawyer and reviewing your over all situation. Retirement funds are usually exempt assets in a bankruptcy. Never use retirement assets to pay down credit card debt!;
- Contact each of your lenders and ask them to send you a print out of your loan account statement(s);
- Contact a real estate broker and obtain a "market analysis" for the current value of your home;
- Come and see us to discuss your situation. The sooner you see us the more options you may have.
If you would like to schedule an initial consultation to discuss how a bankruptcy filing may help you click here.
Finally, beware. There should never be a fee to get assistance or information about the "Making Home Affordable" program from your lender or a HUD-approved housing counselor.
Beware of any person or organization that asks you to pay a fee in exchange for housing counseling services or modification of a delinquent loan. Do not pay – walk away!
Beware of anyone who says they can "save" your home if you sign or transfer over the deed to your house. Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
Never submit your mortgage payments to anyone other than your mortgage company without their approval.
To see if you are eligible for loan modification under recently enacted government loan modification programs go to please use the self-assessment tools provided on at http://makinghomeaffordable.gov/.
Our office is a "debt relief agency" as defined at 11 U.S.C. Sec. 101(12A)
We help people file for relief under the Bankruptcy Code.
