If your mortgage lender has begun a foreclosure action against your home and you file for bankruptcy, the court will issue an automatic stay that halts not only the foreclosure, but all creditor action against you. But this is temporary.
The lender holds a lien on your home, which makes it a secured asset.
They may be willing to try to work with you to achieve a modification or other resolution to your debt, but they are not obligated to. At some point, if satisfactory arrangements aren’t made, the bank will ask the court to lift the automatic stay, and it will continue with the existing foreclosure action.
At Zelenitz, Shapiro & D’Agostino, we work every day with New Yorkers who’ve experienced life changing circumstances and are struggling to hold their finances together and stay in their homes.
Call us today at 718-599-1111 and talk to an experienced bankruptcy and foreclosure attorney for free.