Home Foreclosure Attorneys

The possibility of losing your home can be stressful and overwhelming. The good news is that there are steps you can take to minimize this hardship and possibly keep your home in the process. In Wenatchee, Washington, home foreclosure laws and processes are governed by both state and federal regulations.

Bankruptcy attorneys in Wenatchee can guide you through these processes while offering solutions to protect your home and finances along the way.

Simply put, home foreclosure is the legal process in which a lender attempts to recover the loan balance by forcing the sale of the property used as collateral. In Washington State, this usually involves a non-judicial foreclosure process, which is quicker and doesn’t require a court hearing.

Located in Chelan County, foreclosure proceedings in Wenatchee usually start when you miss several of your mortgage payments. The lender will issue a Notice of Default, giving you a specified amount of time to cure the default or catch up on the missed payments. Failure to do so can lead the lender to move forward with the foreclosure process.

Here is an overview of a typical home foreclosure process in Washington:

• Notice of Default: This is issued after the missed payments.
• Cure Period: You have 30 days to bring the loan current.
• Notice of Trustee's Sale: If payments are not made, the trustee files this notice.
• Auction: The property is sold at a public auction, typically at a county courthouse.

Foreclosure can significantly impact your financial situation and credit and result in the loss of your home, the potential for remaining debt after the sale (deficiency judgment), and a damaged credit score that can affect your future borrowing capabilities.

However, you have options available to delay or prevent home foreclosure, including negotiating with your lender, refinancing, and filing for bankruptcy with the help of a qualified Wenatchee bankruptcy attorney.

Bankruptcy can be a lifeline when you are facing home foreclosure. By filing for either Chapter 7 or Chapter 13 bankruptcy, you can stop the foreclosure process temporarily and get some time to catch up on missed payments or explore other options.

This is also known as a liquidation bankruptcy and can stop foreclosure proceedings temporarily. However, this might not be the most suitable option if you want to keep your home.

• Liquidation Process: This involves selling your non-exempt assets to pay off creditors.
• Quick Process: It is typically completed within 3 to 6 months.
• Eligibility: You must meet the income qualifications (means test) to file for Chapter 7 bankruptcy.
• Automatic Stay: It temporarily halts foreclosure and creditor collection actions.
• Discharge of Debts: Most of your unsecured debts, like credit cards and medical bills, can be discharged.
• Home Loss Risk: If there is equity in your home that exceeds Washington's exemption limits, you may lose your property.
• No Repayment Plan: Unlike Chapter 13, there is no repayment plan, and debts are wiped out quickly.

In Chapter 13 bankruptcy, you have more protections when facing home foreclosure. You can reorganize your debts into a repayment plan that lasts three to five years, allowing you to catch up on overdue mortgage payments while still keeping your home.

• Debt Reorganization: Allows you to reorganize and repay your debts through a court-approved plan that is much more manageable
• Keep Your Home: Helps by allowing missed mortgage payments to be paid over time
• Eligibility: Available if you have a regular income and meet the debt limits (secured debts under $1,257,850 and unsecured debts under $419,275)
• Automatic Stay (11 U.S. Code § 362): Stops foreclosure proceedings and collection actions while the repayment plan is in effect
• Repayment Plan: Allows you to repay many of your debts over 3 to 5 years
• Debt Relief: Helps reduce or eliminate unsecured debts, such as credit cards and medical bills
• No Asset Loss: Less likely to lose your property compared to Chapter 7 because your assets won’t be liquidated

If foreclosure is imminent, consider alternative options, which might allow you to avoid foreclosure and its long-term financial consequences.

• Loan Modification: This involves negotiating with your creditors to alter the terms of your loan, like reducing the interest or extending the payment period. This can potentially make your payments more affordable.
• Short Sale: If you owe more on your mortgage than your home is worth, a short sale may be a good option. In a short sale, the lender agrees to let you sell your home for less than the remaining balance. While this option can impact your credit, it can also help you avoid foreclosure and more severe consequences.
• Deed in Lieu of Foreclosure: This is when you voluntarily transfer the ownership of your home to the lender in exchange for the cancellation of the mortgage debt. Many consider this option if a short sale isn’t possible.

When facing foreclosure, it’s essential to work with a skilled bankruptcy attorney familiar with the laws in Wenatchee and Chelan County. They can help you evaluate your options, whether it’s filing for bankruptcy, negotiating with lenders, or considering other alternatives. Their knowledge can help protect your rights and ensure a favorable outcome.

When facing home foreclosure in Wenatchee, don’t feel that all hope is completely lost. Consult one of our qualified home foreclosure and bankruptcy attorneys, so you can better understand your options and take the steps to protect your home and financial future.