In Arizona, consumers could face dire circumstances if they mismanage their finances. These circumstances could lead to foreclosure and the total loss of their home. An attorney could help them identify viable choices to prevent Foreclosure Glendale AZ and stop financial ruin.
What Happens During a Loan Modification?
A loan modification enables the attorney to define the lending laws that apply to mortgage loans. They evaluate the original mortgage contract to identify any predatory lending practices. The terms of the contract could define clauses that lead to foreclosure intentionally.
Under recent lending laws, all lenders are required to establish affordability. The purpose of these requirements is to lower the potential for foreclosure. Through a loan modification, the attorney demands a change in the terms of the control. According to the laws, the attorney could reverse any negative legal action through these changes.
What Happens During Liquidation?
Chapter 7 bankruptcy offers the option for liquidation. The consumer provides titles and deeds for property to the court. Upon acceptance of their claim, a trustee is assigned. The trustee manages the sale of the properties through the court.
As the proceeds are acquired, the trustee distributes them to the creditors identified in the claim. The consumer receives an automatic stay throughout the six-month period required for this process. They also receive the exempted value for each property. Once the claim is completed, the consumer is no longer responsible for any debts that are discharged by the court.
What Benefits are Provided with Chapter 13?
Chapter 13 reorganizes the consumer’s debts. The court provides a new repayment plan. The consumer submits payments to the court each month. The funds are distributed to their creditors through the court. These cases last up to five years and provide an automatic stay for the full duration.
In Arizona, consumers gain assistance for overwhelming debt through a variety of choices. These choices include loan modifications and bankruptcy. An attorney helps the consumer define what options are most appropriate for their circumstances. This could include reorganization of liquidation strategies. Consumers who need help with Foreclosure Glendale AZ should Visit the Site for more information today.