Opportunities to Stop Foreclosure in St. Louis, MO
In Missouri, foreclosure is a process in which a lender can seize a real property to collect a debt. The mortgage lender cannot take any legal action until the consumer is 90 days overdue. However, select lenders can add certain clauses to the contrary in the mortgage contract. To lower the chances of a foreclosure, the consumer has a few legal avenues that are accessible to them. An attorney can show them options to stop foreclosure in St. Louis, MO.
Loan Modification Opportunities
A loan modification is possible when the mortgage contract wasn’t based on affordability. The lender cannot provide a mortgage if the consumer cannot afford it. This is a violation of federal laws. Additionally, the lender must provide the consumer with the most affordable interest rate possible. These failures provide the chance to request modifications.
Settlement Offers for Creditors
Settlement offers are also possible for stopping the legal action. However, in these cases, the consumer must participate in a quick sale of the property. The sale provides them with the opportunity to collect a larger portion of the overdue balance. If the lender accepts a settlement offer, they cannot take legal action if the debt isn’t paid in full after the property sells.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy allows the consumer to sell off assets and acquire proceeds to pay off the debt. They must provide evidence of ownership for each property when filing. The court assigns a trustee to manage the sale of assets and distribute funds to creditors.
Chapter 13 Bankruptcy
Chapter 13 requires the consumer to qualify based on their income. They must have an income that exceeds the county median for their household size. The chapter allows them to stop foreclosure and follow a new repayment plan.
In Missouri, foreclosure begins after a consumer is overdue on their mortgage payments by three months. The action allows the creditor to acquire the property from the consumer and sell it to accumulate funds. The consumer does have the opportunity to purchase the property during the sale. Consumers who need help from an attorney to stop foreclosure in St. Louis, MO can visit Stlbankruptcyfirm.com for more information now.