brand brand
Helping good people through bad times
Local:423-954-7180
Local:423-954-7180

Chattanooga residents receiving relief from foreclosure

In Chattanooga, Tennessee, many home owners often face some difficult choices when dealing with a pending foreclosure. Though the first choice is usually trying to work with the bank for a loan modification, if the foreclosure process has started and is well under way, one of the only ways to be sure to stop the foreclosure before the home is lost may be by filing a Chapter 13 bankruptcy.

Currently, the Tennessee attorney general is sending notices to some Tennessee residents who have lost their home to foreclosure between 2008 and 2011. These notices will include information on a foreclosure settlement and an application to determine eligibility for the money. Those who will be able to apply for the program are people who lost their homes to Bank of America, JPMorgan Chase, Wells Fargo, Citi Financial and Ally/GMC.

This program is related to a national settlement that took place when 49 states, as well as the federal government, settled with the five previous mentioned banks in February 2012. This program, however, is only for people who have already lost their homes.

For those who are still fighting to try to keep their homes, filing for a Chapter 13 bankruptcy is one of the best ways to stop foreclosure. This is because once a Chapter 13 bankruptcy is filed, an "automatic stay" is put in place. This means that anything involved with a foreclosure, including a sheriff's sale, is stayed the moment the Chapter 13 bankruptcy is filed. The homeowners can then work out manageable payments with creditors to try and have money to catch up on their mortgage.

Without a Chapter 13 bankruptcy, foreclosure can be a very difficult process. The goal of a fresh financial start is certainly obtainable through Chapter 13.

Source: Business Week, "Foreclosure help notices being mailed in Tennessee," Oct. 8, 2012

No Comments

Leave a comment
Comment Information

Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-954-7180
Phone: 423-624-4002
Fax: 423-624-0509
Chattanooga Law Office Map