Option 1

Be an Ostrich

The word foreclosure is very scary for most individuals  But there comes a time when things are getting difficult for you and paying the mortgage takes a big chunk out of your small paycheck. The credit card companies are calling six times a day, sometimes even calling your job, or family members. You make the decision to pay the minimum payment to the credit card companies and skip the house payment. You tell yourself that the mortgage is really not due until the 15th of the month and something will work out for you by then. Unfortunately, nothing comes through and you are out of funds.

The next month is more of the same, so you continue to make the minimum payment on your credit card and ignore your mortgage.



Soon, you receive a notice of default, which you ignore because you are now three months behind on your mortgage and there is no way for you to catch up.  Soon you receive a notice of foreclosure sale.  This is when you begin to panic as you now see that the bank has a definite date on which it intends to take action.

Option 2

Seek Help

So you decide to bite the bullet and call a bankruptcy attorney. You have at least two courses of action open to you.


  • First, you and your attorney may decide that a Chapter 7 bankruptcy is the most viable course of action under the circumstances.  In this option, you will let the house go back to the bank. Filing a Chapter 7 Bankruptcy prevents the bank from selling the property on the day they intended.  They can, still get relief through the court and move forward with the sale at a later date. However,  the filing of the case will delay matter and give you time to research other options.


  • Or second, you and your attorney may decide to file a Chapter 13 bankruptcy. This allows you to catch up on the back payments over a period of three to five years, depending on your monthly income. Doing a Chapter 13 when feasible, is the best outcome for a lot of people facing a foreclosure, as it gets rid of unsecured debts  such as those pesky credit cards and medical bills and allows you a considerable amount of time over which you can catch up on your mortgage arrears without harassment from creditors.

If you or someone you know is interested in finding answers to your financial problems call us at  510 233-7700, send us an email to . Or go to for more information. The attorney and staff of the Dowe Law Firm will get you on the path to financial stability.

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