Foreclosure Defense

Is your home in foreclosure? The attorneys at MLG Legal in Edina can help.

Bankruptcy and Debt Relief Options to Defend Against Foreclosure

Learning that your home is going into foreclosure can be extremely frustrating, to say the least. The idea of the bank taking your home can be terrifying and emotionally overwhelming. That’s why at MLG Legal, we often help our clients utilize bankruptcy or other debt relief options to defend against foreclosure. Whether you’ve already received a foreclosure notice, or you are expecting one to arrive at your door in the near future, the attorneys at MLG Legal can help. Our Edina law firm has been helping clients defend against foreclosures since 2002, and we handle bankruptcy and debt relief cases of all kinds. Reach out to our team today and we’ll get you started with a consultation to learn more about how we can help you. 

Why Choose MLG Legal to Assist With Your Foreclosure Defense?

  • We’ve been serving Edina and the surrounding areas since 2002.
  • We are a multi-generational, family-owned law firm.
  • We can help you utilize bankruptcy or other debt relief solutions to defend against foreclosure.
  • We’ll help put an end to collection calls and creditor harassment.
  • We have the experience and expertise needed to guide you through the bankruptcy or debt relief process quickly and efficiently.
Stop Foreclosure
Stop Creditor Harassment
Stop Collection Calls
Find the Financial Relief You Need

Foreclosure Defense Options

If you’ve already received a foreclosure notice, you are probably wondering if there is anything that you can do. And, while acting early is always preferable, even if your home is currently in foreclosure, the team at MLG Legal may be able to help. Bankruptcy and other debt relief options such as mortgage negotiation are often used to defend against a foreclosure. 

Just because your home is in foreclosure doesn’t mean that there is nothing you can do about it. In fact, the worst thing that you can do at this stage is nothing. The team of experienced bankruptcy and debt relief attorneys at MLG Legal is here to help you determine your best course of action, whether that is mortgage modification, bankruptcy, or another option. Take action today against foreclosure by contacting our Edina law firm. 

Can Chapter 7 Bankruptcy Stop Foreclosure?

If your home is in foreclosure, filing for Chapter 7 bankruptcy will result in an automatic stay being ordered by the court. This means that all creditor collection activity will cease and the foreclosure will be put on hold for the duration of the bankruptcy. A Chapter 7 bankruptcy will not prevent a foreclosure if you do not have the money to pay for your home. However, if you can make up missed payments and continue to keep your payments current, you may be able to keep your home. Chapter 7 bankruptcy, also called liquidation bankruptcy, isn’t the type of bankruptcy that we would recommend filing if you are looking to stop a foreclosure, but in some select circumstances, may work for some clients who are able to make up missed payments. 

Can Chapter 13 Bankruptcy Stop Foreclosure?

As with all bankruptcy proceedings, when you file, an automatic stay will be ordered by the court which will stop all collection activity including a foreclosure. However, the automatic stay does not prevent a foreclosure from proceeding after the bankruptcy is completed. With a Chapter 13 bankruptcy, you’ll be required to pay back some of your debt during a repayment period of three to five years. This means that if you file a Chapter 13 bankruptcy, as long as you can continue to make your monthly payments on your mortgage as well as your repayment plan, you may be able to keep your home and stop the foreclosure.

Filing for Chapter 13 bankruptcy may be a viable solution to stopping your home’s foreclosure. The team at MLG Legal can help you understand if this is the right path for you. Reach out to us today to learn more.

Can Mortgage Modification Stop Foreclosure?

A mortgage modification can help make your monthly payments more affordable by changing the terms of your loan and in turn help you avoid foreclosure. During a mortgage modification, the goal is to reduce your monthly payments. This is often done by extending the length of your loan, reducing your interest rate, or a combination of both. If you start the mortgage modification process before a foreclosure has been filed, the bank cannot conduct a foreclosure while your mortgage modification is under consideration.

The team at MLG Legal in Edina can help you determine if a mortgage modification will help you to avoid foreclosure and keep your home. Reach out to us today to learn more.

Reasons to Avoid Foreclosure

The most obvious reason to avoid a foreclosure on your house is that you will no longer have a home to live in. However, foreclosures can have other long-term and short-term effects including on your credit score, ability to get another mortgage in the future, and even on the taxes you owe at the end of the year.

If you have received a foreclosure notice, it’s time to reach out for assistance. The team at MLG Legal is standing by to help you stop your foreclosure. Contact us today for a consultation.

A Foreclosure Will Negatively Impact Your Credit Score

Having a foreclosure on your record will negatively impact your credit score, and this can affect not only your ability to get another mortgage or loan, but also your interest rate on future loans, as well as have other consequences.

Your credit score will be negatively impacted by the foreclosure in several ways. Your late and missed payments will affect your credit history, which makes up a considerable percentage of your credit score. In addition, your variation in types of credit and length of your credit history, which also impact your score, may be affected as well.

A Foreclosure Will Affect Your Ability to Get a Loan or Mortgage

While getting another mortgage after a foreclosure is not impossible, it is much more difficult. Most lenders will require a minimum credit score, which means that you will likely have to take the time to build your credit back up after the foreclosure. Additionally, some lenders require a waiting period of anywhere from two to seven years, depending on the lending institution.

Having a foreclosure on your record may also impact your ability to receive other loans and lines of credit. Depending on the lender and how long after the foreclosure you apply, you may have difficulty getting auto loans, credit cards, and other lines of credit.

A Foreclosure Will Increase Your Interest Rate on Future Loans

After a foreclosure takes place, it will negatively impact your credit score, which can lead to higher interest rates in general. However, when a lender sees a foreclosure on your record, they will also consider you a high-risk client, which can result in higher interest rates on any future loans that you are able to obtain.

A Foreclosure Can Affect Your Taxable Income

One lesser known fact about a foreclosure is that even though you’ll no longer have to pay the mortgage payments for your home, the forgiven debt may be considered taxable income by the IRS. While exclusions certainly apply here, many individuals are shocked to learn that after they have had difficulty paying for their mortgage, and have had their home taken, that they are still responsible for paying additional taxes.

A Foreclosure Causes a Considerable Emotional Toll

One thing that we have not touched on nearly enough is the emotional toll that a foreclosure creates. If your home is going into foreclosure, you are already having financial difficulties — and these may extend to other areas of your life as well. The emotional turmoil is enough to overwhelm anyone. That’s why it’s important to have an experienced team on your side during this trying time. At MLG Legal, we can help you determine a path out of this financial plight. Reach out to us today to schedule a consultation where we can get to know your unique situation and learn how we can help.

Find a Foreclosure Defense That Works for You

Have you missed several mortgage payments? Are you having difficulty keeping up with your monthly bills? If so, you should know that you are not alone, and there is something that you can do. Oftentimes, bankruptcy and mortgage modification can be used to prevent or stop foreclosure. The team at MLG Legal can help you determine if either of these methods is right for you.

Don’t wait until it is too late. Learn how you can stop foreclosure today from the experienced bankruptcy and debt relief attorneys at MLG Legal.

Schedule a Consultation With Our Edina Attorneys Today

If you are facing foreclosure, or have missed several mortgage payments, the team at MLG Legal can assist you. We take the time to get to know each one of our clients and your specific circumstances so that we can better help you, and whether your situation will require a foreclosure defense or if we can possibly prevent a foreclosure altogether.

In a situation where you are facing foreclosure of having financial difficulties of other kinds, it’s always best to act as soon as possible. The quicker we can assess your situation, the more options will be available to you. However, no matter where you are in the foreclosure process, our team can likely help. At MLG Legal, we can often stop the foreclosure process by utilizing bankruptcy or other debt relief methods such as mortgage modification. Reach out to our team today to learn more and schedule a consultation so that we can discuss how we can help.