So after struggling to pay the mortgage payment, then falling behind, then calling the mortgage company several times to try to work out a modification, and then submitting numerous documents on more than one occasion it happens....the sheriff's department comes to your house or you get a certified mailing and when you open it there is summons and complaint for mortgage foreclosure. What now?
First of all, don't panic. The complaint and summons does not mean that you are kicked out tomorrow, or in 10 days or even in a month or 2. Unfortunately, you are not alone in receiving this complaint. In Indiana, depending on how you were served with these papers you have either 20 or 23 days to respond. Many people expect to see a court date at which they are required to appear, but this is not the case in Indiana. If you fail to respond a default judgment can be entered against you. What you need to do is find an attorney who can advise you of your options with regard to the mortgage foreclosure. In my opinion a bankruptcy attorney who also does litigation is the best type of attorney to help you with this because even if you never thought you would ever need to file a bankruptcy, there are tools that an attorney may be able to use in bankruptcy to help you with your foreclosure problem. Do not delay in finding an attorney to help you because there are deadlines involved and attorneys are busy people with many clients that cannot always drop everything to work with you last minute because they have an obligations to their existing clients.
The good news is that in Indiana those who are defendants in mortgage foreclosure lawsuits when the property in question is their residence are eligible for a settlement conference. This is a conference where you (and your attorney if you are represented by an attorney) get to meet with the attorney for the mortgage company as well as a person from the mortgage company via telephone. This is the opportunity to try to figure out a modified payment that will allow you to stay in the house, if this is what you want to do. There are certainly many times when this settlement conference does not reach an agreement, but it is still an opportunity and you should go into it with a number that you believe you can realistically pay to the mortgage company. It is important to be realistic and understand that the mortgage company will not agree to let you stay in the home for free due to circumstances outside of your control.
If the settlement conference ends in an agreement between you and the mortgage company to make reduced payments, then so long as you continue to make these payments there will typically be no further action taken in the mortgage foreclosure. However, if no agreement is reached at a settlement conference, then it is likely that the mortgage company will continue to push forward in an attempt to foreclose on the house.
Once it becomes clear that the mortgage company will no longer work with you, I recommend a long reflection as to whether the house is something that you should keep or something you should give up. I know that no one wants to have to tell their kids that they are moving because the house is no longer affordable. I know no one wants their neighbors to see them pack up and leave. However, that does not mean that sometimes it is not the right decision to let the house go. Even if you decide to let the house go, you will be able to live there a while so that you can find another place to live and hopefully pack up some money.
When you are evaluating whether or not you want to try to keep the home is where a knowledgeable bankruptcy attorney may be helpful. Many bankruptcy attorneys offer free consultations and will present to you whether bankruptcy may be able to help you keep your home. Or, how bankruptcy can help you get out from under your home. Whatever your situation, there are always options. In my opinion, the only way that you will know how to make the best decision for you and your family is if you are aware of all of your options.
If you have received a foreclosure complaint in Hamilton County, Indiana, I may be able to help you. Please call me at 317-575-8222 or contact me here.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.
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