Duluth Stop Mortgage Foreclosure Lawyer | St. Louis County MN Chapter 13 Bankruptcy Attorney

Facing Foreclosure? Our Debt Relief Lawyers Can Help

In the current economy, many homeowners are struggling to pay their monthly mortgage payment. Whether financial troubles stem from losing a job, suffering a sudden illness, proceeding through divorce or any other reason, once you start to fall behind on your mortgage, financial problems can spin out of control — making it impossible to catch up on delinquent mortgage payments and other debts.

The Law Office of Yvonne Michaud Novak offers honest advice and experienced representation to help individuals and businesses experience debt relief. If you are facing foreclosure on your home, talk with a skilled Duluth lawyer at our law firm about how to stop mortgage foreclosure and regain control of your finances. Contact the Law Office of Yvonne Michaud Novak for a free consultation. Call Today: 218-260-4341 or (Toll Free) 888-815-5046.

Stop Mortgage Foreclosure With Chapter 13 Bankruptcy

If you are behind on your mortgage payments and your home is being foreclosed on, you can stop the foreclosure by filing a Chapter 13 debt repayment bankruptcy. The Chapter 13 bankruptcy prevents the foreclosure from proceeding, even if a sheriff's sale has been scheduled. The amount you are behind on your mortgage is part of the Chapter 13 repayment plan.

After the plan has been filed, you must make the regular monthly mortgage payment, plus a manageable monthly payment to the bankruptcy trustee in order to catch up on the amount that you are behind. The bankruptcy trustee then disburses payments to your creditors in accordance with the plan, which normally lasts three to five years.

Eliminate a Second Mortgage

Another advantage of a Chapter 13 bankruptcy plan is that you can strip off a totally unsecured second or junior mortgage. The stripped mortgage is treated as an unsecured debt and only has to be paid in part. You cannot strip an unsecured mortgage in a Chapter 7 bankruptcy. For a mortgage to be totally unsecured, the value of the home, minus the first mortgage, must leave no equity for the second or junior mortgages. That means that an appraisal of your home will have to be obtained to make sure there is no equity for the second or junior mortgage.

Minnesota Mortgage Foreclosure Process

The mortgage foreclosure process starts by the lender sending written notice that the borrower is in default. In Minnesota, the foreclosure can proceed through publication in a newspaper or through the courts. Usually the foreclosure proceeds through publication and if the borrower is not able to work out repayment with the lender, then a sheriff's sale is published. The sale is published for six weeks. The borrower will receive notice of the sale within four weeks of the sale.

A borrower can postpone the sheriff's sale for five months by filing a form with the recorder's office, the sheriff and the foreclosing attorney. The form must be filed 15 days prior to the sale. As long as the borrower received notice of the original sale date, no new publication is necessary at the end of the postponement period — the sheriff's sale just happens and the redemption period is shortened to five weeks. After the sheriff's sale where there has been no postponement, the borrower has time to repay the mortgage in full, and redeem the home. As long as the borrower is living in the home, he or she is usually given six months to redeem the home and can live in the house during that time.

Our St. Louis County Chapter 13 Bankruptcy Lawyers Can Help

Yvonne Michaud Novak is a local Chapter 13 bankruptcy attorney who works with individuals and small businesses in the Duluth/Superior area who need help with stopping foreclosure and dealing with other debt problems. Whether you have received mortgage default notices, notice of foreclosure, notice of the sheriff's sale or the sale has already taken place, you do have options to save your home and overcome your debt problems. Attorneys at our experienced debt relief law firm can help you understand the available solutions and guide you through the legal process.

Contact Our Law Firm to Stop Bankruptcy in the Duluth/Superior Area

Contact the Law Office of Yvonne Michaud Novak today to schedule your free initial consultation at 218-260-4341 or (Toll Free) 888-815-5046. We offer after-hour appointments upon request. We are conveniently located in Duluth, Minnesota, and serve clients throughout the Duluth/Superior area.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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