Mishandled Documents, Irregularities Result In Halt On Foreclosures
When most people are notified by their lender that their house will soon go into foreclosure, they think all is lost. If a party cannot be personally served, the sheriff can serve it by posting a copy of the notice in a conspicuous place and manner upon the real property. Nearly a quarter of the Country’s mortgages have interest rates scheduled to reset this year or next year which means higher payments for millions of homeowners.
Up until the time your home is scheduled for auction, most lenders would rather work out a compromise that would allow you to get back on track with your mortgage than take your home in a foreclosure. Once you file a bankruptcy petition, federal law prohibits any debt collectors, including your mortgage lender, from continuing collection activities.
For example, if you owe $6,000 in missed payments and the bank may allow you to make …