Facing the Threat of Foreclosure in Tennessee?

The housing crisis and financial downturn have made it impossible for many people to keep up with mortgage payments they agreed to under very different economic conditions. If this situation is affecting you, you may be finding yourself at risk of foreclosure. You may even have received notice of a trustee sale of your home.

At the Reno Law Firm in Memphis, our goal is to help our clients stop foreclosure both in the short term and the long term. We use a number of strategies to pursue solutions with the help of the legal protections offered by the bankruptcy courts. Contact us to schedule a free consultation with experienced attorney Claire Reno. We serve clients in Shelby County and throughout the region.

Taking the Right Approach for Your Circumstances

There are several ways that filing Chapter 7 bankruptcy or Chapter 13 bankruptcy can help you deal with the threat of foreclosure. Your options may include the following:

  • You can spread out the repayment of your mortgage arrears (late or missed payments) over the course of three to five years in a Chapter 13 payment plan. You will still need to make your regular payments going forward, but you will not be charged interest on your arrears.
  • If you are prepared to give up the house, retaining a bankruptcy lawyer may have advantages. If you owe more on the house than it is likely to sell for, the bank will be able to get a deficiency judgment against you. However, the bank may be willing to negotiate a deed in lieu of foreclosure, or you may be able to discharge the deficiency balance in bankruptcy.
  • Bankruptcy may help you buy time. If your sale date is approaching, filing for Chapter 7 or Chapter 13 will cancel the sale. You can then explore other options for avoiding foreclosure in the long run, such as loan modification.

There have also been legislative proposals to allow bankruptcy judges to reduce mortgage interest rates and balances. This is actually already possible for some vacation homes and second mortgages, and we will be watching carefully to see if it becomes an option for first mortgages on primary residences.

To learn more about your options for stopping foreclosure with the help of bankruptcy protection, contact us today.

At the Reno Law Firm, based in Memphis, Tennessee, we represent clients throughout West Tennessee, including the communities of Brownsville, Germantown, Collierville, Bartlett, Arlington, Millington, Cordova, Covington, Jackson, Munford, Atoka, Brighton and Bolivar; and other locations in Shelby County, Tipton County, Fayette County, Haywood County, and Madison County

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