Home Foreclosure Attorney Las Vegas Nevada
Nevada has one of the highest foreclosure rates in the country. Many home foreclosures occur because people are terrified and they allow their fear to result in inaction. Take action by contacting an experienced Nevada home foreclosure attorney at the Okano Injury Law based in Las Vegas.
A big mistake people make in handling a foreclosure is to ignore it or think there is no hope. But, by ignoring the problem you can end up suffering the following consequences:
- Losing the opportunity to save your home.
- Owing a deficiency balance after your home is foreclosed.
- Having an income tax debt even if the mortgage deficiency balance debt is forgiven.
- Paying property taxes, homeowners association fees, or insurance you don’t have to pay.
- Being forced out of your home before you have to surrender it.
The Home Foreclosure Process in Nevada
In the State of Nevada, a foreclosure is commenced by the lender filing and sending the borrower a Notice of Default. After filing such notice the Lender must wait for 3 months. After 3 months, the lender may file and give notice to the borrower of the sale date of the property. The proceeds from the sale are applied to the existing mortgages. The lender may then seek recovery against the borrower for any debt left unpaid.
Chapter 13 Bankruptcy & Foreclosure
If you are behind on your payments and you do not have the ability to pay your mortgage arrears (past due home loan payments) immediately, we can help. We can file for Chapter 13 Bankruptcy on your behalf and create a three to five year plan to pay your mortgage arrears gradually over time. With a Chapter 13 Bankruptcy, you pay no interest on your arrears. We can use a Chapter 13 Bankruptcy to eliminate your 2nd and 3rd mortgages.
If your home or rental property is too far underwater, eliminating the mortgage debt in Bankruptcy may be your best option. This is especially true when there are other debt problems that make filing for Bankruptcy the obvious choice.
It May Not Be Too Late To Stop A Home Foreclosure
Do not assume that it is too late for action. Our firm has helped many people who thought it was too late to stop a home foreclosure. Even if you have defaulted on your loan and received a Notice of Default or Notice of Sale, we are here to help. If your home has been scheduled for sale and the sale is just a few days away, we may still be able to help
Recently passed legislation allows property owners to elect to go into mediation with their lender after receiving the first foreclosure notice. Mediation allows discussion with your lender, in the presence of a third-party neutral. The purpose is to explore, in real time, any option to modify the arrears, monthly payment or interest rate to keep you in your home. However, in mediation, lenders are under no obligation to make concessions to property owners or get a loan modification. The lender’s only obligation is that a decision maker is present and that have such discussion in good faith.
7 Reasons to File For Bankruptcy When Facing Foreclosure
- Bankruptcy immediately stops the home foreclosure process. This allows you some additional time to explore solutions to the foreclosure, or additional time to better find alternative housing.
- Chapter 13 Bankruptcy allows you place any missed payments into a plan and spread the payments over the course of three to five years. Unlike mediation, Bankruptcy is mandatory. That is, lenders must participate in Bankruptcy. It is the law of the United States.
- Second mortgages may be eliminated in a Chapter 13 Bankruptcy. In order for this to be successful, it must be shown that the second mortgage is wholly unsecured. That is there is no equity in the home beyond the first mortgage.
- If you don’t file bankruptcy and your home is sold in foreclosure and the sale does not pay the debt, you may eventually be sued for any remaining amount (deficiency). Judgments related to this debt can be renewed every 6 years and can remain on your record permanently. A Nevada judgment may be continually renewed.
- If you are facing a home foreclosure, your credit score is already severely damaged. Filing a Bankruptcy probably will not worsen your credit score and will, in many cases, improve your FICO score.
- There is no tax obligation in eliminating your mortgage debt. In the case where you are surrendering your home and discharging the debt in Bankruptcy, such discharged debt is not taxable. However, without Bankruptcy, if your lender does foreclose and then forgives the deficiency balance, such debt may be treated as income and you may be held liable to pay any taxes on this phantom income.
- You do not lose the option to Mediate with your lender while in an active Bankruptcy case.
Contact an Experienced Las Vegas NV Foreclosure Lawyer
Whether you want to save your home from foreclosure or delay the foreclosure long enough to find other housing, bankruptcy will temporarily stall the foreclosure sale and give you time to explore your options. To find out more about how you can address a foreclosure with bankruptcy contact the Okano Injury Law at (702) 566-3600, or contact us by using our contact form.