Foreclosure
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A foreclosure in Knoxville is a home that's seized and put up for sale by the bank.
Don't loose your home when there are US Bankruptcy options available to save your Knoxville home.
Foreclosure is the legal process that allows the bank or mortgage company to take possession of your home if you fall behind or stop making your payments. The bank or mortgage company has the right to take your property because they have placed a lien against the property. This lien, known as a Deed of Trust, along with the loans documents you signed when you borrowed the money to purchase the home, allows the creditor to foreclose if you stop making or fall behind on your payments.
In Knoxville, we have what are known as “Public” foreclosures. This means the creditor does not have to go to Court to foreclose on your home. Tennessee state requires that the creditor notify you in writing and to publicly post the foreclosure notice in a newspaper circulated in your area. The notification period is three weeks. As you can see, creditors can very easily foreclose on your home if you fall behind. The good news is bankruptcy can help save your home from foreclosure. But you must act quickly. If the mortgage company has already foreclosed, bankruptcy will not get your home back.
Filing Chapter 13 Bankruptcy, prior to the home being foreclosed, will stop the creditor from foreclosing. Just like every other creditor must stop collecting debts when you file for bankruptcy, the mortgage company must also stop. This is very important and very powerful.
Chapter 13 Bankruptcy then allows you, through your attorney and the Bankruptcy Court, to keep making you normal payments while also catching up what you are behind. Thus, at the end of your Chapter 13 Bankruptcy, you are completely current on your mortgage and the mortgage company cannot foreclose (unless you get behind again) and they cannot punish you because you filed bankruptcy. Also, most other unsecured debts you owed before the bankruptcy are also discharged, meaning you no long those debts.
Most significantly, you lose your home as a result of a foreclosure. This foreclosure can also severely damage your credit. According to some credit experts, a foreclosure may damage your credit more than filing a bankruptcy.
In addition, you may have tax consequences from a foreclosure, if your home is bought at the foreclosure sale by the mortgage holder for less than the amount you owe on your mortgage.
The IRS can say the difference between what you owed on the mortgage and what your home or house was sold for at the foreclosure sale, is income from the forgiveness of a debt.
You may receive a tax information form (1099) from the mortgage holder showing this income was reported to the IRS. If this is your situation, we urge you to contact a tax expert.
If you are behind on your house payments or if you’ve already received a notice of foreclosure, we can help! But time is of the essence.
You have a very small window in which to save your home.
Contact Cindy Lawson & Associates P.C. immediately at (865) 938-0733 or contact us for a free, no-obligation consultation. We will create a plan that allows you to keep you home and stop the foreclosure.
We want to help you get your life back. We offer free consultations and the ability to file your bankruptcy online. We can meet remotely or in person. The choice is up to you.
Cindy Lawson & Associates P.C. has been serving clients in Knoxville since 1997. We are a debt relief agency.
