Springfield Foreclosure Defense Lawyer

Protecting Your Missouri Home from Foreclosure 

It can be easy to feel powerless when you fall behind on your mortgage payments and are threatened with foreclosure. No matter your circumstances, losing your home will almost certainly bring devastating consequences to you and your family.

Our Springfield foreclosure defense lawyers at Licata Bankruptcy Firm PC can help you explore legal options that can help you save your home. Filing for bankruptcy, one form of debt relief, can freeze the foreclosure process and give you the breathing room and flexibility to catch up on mortgage payments and map out your next steps.

Our bankruptcy team can walk you through the implications of filing and develop a strategy that will best protect your interests. Our goal is to help you build a more sustainable financial future that will allow you to keep your home and stay out of overwhelming debt.

Worried about losing your home? Call Licata Bankruptcy Firm today at (417) 213-5006 or contact us online to explore your options before it's too late!

If you are facing foreclosure or the process has already started, do not wait to call (417) 213-5006 or contact us online. We offer free initial consultations.

Understanding the Foreclosure Process in Missouri

The foreclosure process will not be initiated immediately if you are late on a mortgage payment. In fact, you can miss multiple payments before any foreclosure proceedings can begin. Federal law requires that banks and lending institutions must wait a minimum of 120 days – or 4 months – before a foreclosure can start.

This means that you will have ample time to anticipate and prepare for a foreclosure. It also means you do not have to worry if you are delinquent on a payment or two. Keep in mind, however, that you will be subject to any penalties, interest, or late fees mandated by your servicer.

If circumstances prevent you from catching up on payments, you should expect to receive a breach letter from your bank or lending institution. This letter will formally indicate that the mortgage is in default and the steps that must be promptly taken to cure the debt and avoid foreclosure. Per federal requirements, you must also receive information about foreclosure avoidance options.

It is important to understand that banks and lending institutions do not like foreclosures, as they are expensive and resource consuming. In many circumstances, you can negotiate with your servicer to refinance or modify the loan. Most Missouri deeds have a reinstatement clause that allow you to halt any imminent or initiated foreclosure proceeding if you can catch up on ally payments and late fees.

Should you not be able to reach a compromise with your servicer, you will have until the date prescribed in your breach letter – typically 120 days after the first missed payment – to catch up or face foreclosure. If you know you will be unable to cure the debt by that date, you should consider immediately speaking to a member of our team about your foreclosure defense options.

What to Expect During the Foreclosure Process in Missouri

Most foreclosures in Missouri are nonjudicial, meaning they do not involve state courts. This is bad news for homeowners, as it means the foreclosure can happen extremely quickly in many situations.

The lending institution is obligated to send you a notice of foreclosure sale at least 20 days before the sale takes place. They are also required to place advertisements of the sale in a local newspaper.

Once the foreclosure sale takes place and the home’s ownership is transferred, you can no longer stop the process through bankruptcy. If you receive a foreclosure sale notice, contact a bankruptcy professional as soon as possible.

Be aware that you can also face deficiency judgments in Missouri. Many times, the foreclosure sale price is lower than what you owed on the mortgage. For example, say you owed $100,000, but the foreclosure sale purchase only generated $60,000.

You are still on the hook for the remaining $40,000, even though you have lost your home. Your servicer can sue you for the remaining deficiency, which makes avoiding foreclosure all the more important.

How Bankruptcy Stops Foreclosure

Filing for bankruptcy stops the foreclosure process and give you the time that you need to catch up on payments. Our Springfield foreclosure defense attorneys can help you explore your options in filing for either Chapter 7 bankruptcy or Chapter 13 bankruptcy.

When you file for bankruptcy, the court promptly issues the automatic stay, an order that halts all collections actions. The automatic stay will temporarily stop any pending or ongoing foreclosure. It will also prevent any collections lawsuits, creditor harassment, wage garnishments, or repossessions. The freeze remains in effect until your bankruptcy filing is completed.

Filing for Chapter 13 bankruptcy can give you as many as 5 years to catch up on your mortgage. During this time, your debt obligations will be consolidated into a single monthly payment. So long as you make this payment, the automatic stay will continue to prevent foreclosure, giving you time to reorganize finances and resolve your mortgage debt.

Chapter 7 bankruptcy can also prevent foreclosure, though its protection is more temporary. Filing for involves undergoing a liquidation process, but homestead exemptions allow many filers to safeguard their homes.

Filers who complete a Chapter 7 bankruptcy or Chapter 13 bankruptcy will generally be entitled to discharge unsecured debts at the conclusion of either process. Unsecured debts include credit card debt, medical bills, personal loans, and unpaid utility bills.

It is important to note that you cannot discharge missed mortgage payments to avoid foreclosure following a bankruptcy, but the ability to eliminate other types of significant debt can give you the financial flexibility you need to catch up on any mortgage deficiencies.

Our bankruptcy team can help you explore your options throughout the process and advise on strategies that will help bring you current.

Bankruptcy cannot stop foreclosure after a sale has already taken place. However, filing for bankruptcy can help you resolve any deficiency judgments or related lawsuits.

Contact Our Springfield Foreclosure Defense Attorney Today

In many cases, foreclosures can take weeks or even months after the 120-day mark to come together. Other times, foreclosures can happen frighteningly fast, giving you little time to respond and protect your home.

In some cases, you may only have days to act before a sale precludes relief through bankruptcy. Licata Bankruptcy Firm PC offers same-day appointments and can aggressively move to help you file and stop an imminent foreclosure sale.

Our bankruptcy team is compassionate to the stress and uncertainty that comes with the threat of foreclosure. We are committed to helping you leverage bankruptcy’s tools to save your home and live a life free of debt.

Our Springfield foreclosure defense lawyers have substantial experience using the automatic stay to efficiently stop creditor actions and save homes. We will work with you to identify what type of bankruptcy you qualify for and how filing can assist you in eliminating debt and reorganizing finances.

Don't wait until the foreclosure process is underway—contact a trusted Springfield foreclosure defense lawyer now to protect your home and financial future!

FAQ: Foreclosure Defense in Missouri

Can I stop a foreclosure if I’m only a few payments behind?

Yes, being a few payments behind typically doesn’t trigger immediate foreclosure. You often have time to work with your servicer or explore legal strategies like bankruptcy before a foreclosure is initiated.

What is a breach letter, and why is it important?

A breach letter is a formal notice from your lender stating that your mortgage is in default. It outlines what you must do to cure the default and avoid foreclosure. It’s a critical document that signals the beginning of the pre-foreclosure process.

Do I have to go to court for a foreclosure in Missouri?

Most foreclosures in Missouri are nonjudicial, meaning they do not involve court proceedings. This can make the process faster and give you less time to respond.

Will bankruptcy eliminate all of my debt?

Bankruptcy can discharge many unsecured debts like credit cards and medical bills. However, it cannot eliminate your mortgage if you intend to keep your home, and you must still repay missed mortgage payments to avoid foreclosure.

What happens if I owe more than my home is worth after foreclosure?

If the foreclosure sale doesn’t cover your entire mortgage balance, your lender can pursue a deficiency judgment against you for the remaining amount owed.

How fast do I act if I get a foreclosure sale notice?

Immediately. Once a foreclosure sale is scheduled, you may have only days to file for bankruptcy and stop the process. Delaying action could mean losing your legal ability to save your home.