Facing Foreclosure? Our Iowa City Attorneys Can Help.

The prospect of losing your home through mortgage foreclosure is overwhelming. Thousands of families across central and eastern Iowa face this problem each year, often due to job loss, health problems or other events entirely beyond their control. Real, workable solutions may be available either to save your house or move on with the resources to start over.

If you have fallen behind on mortgage payments or know you will soon, the time to get knowledgeable legal counsel is right now. At Fitzgerald, Klesner, & Pavelich, PLC, in Iowa City, foreclosure defense attorney Steven Klesner will help you carefully assess all options and make the best possible decisions for the future. You can set up a free consultation with him by calling the firm at 319-320-4569 today.

What You Should Know About Foreclosure

What Is Foreclosure?

Foreclosure is the legal process used by a creditor to gain possession of real estate. Usually, foreclosure proceedings are begun by a mortgage lender when a homeowner has failed to make payments on a mortgage loan.

How Can You Avoid Foreclosure?

Tips for avoiding foreclosure are many and varied. Many discussions of foreclosure and how to avoid it make no mention of bankruptcy as an option. For a discussion of whether to consider bankruptcy when facing foreclosure, feel free to contact our attorney, and he can explain why bankruptcy may be your most effective option.

Sometimes, people miss mortgage payments because they prioritize other debts, such as credit cards, instead. While no one wants to default on either kind of debt, failure to pay credit card debt may eventually lead to bankruptcy, but failure to pay the mortgage debt will put the family home at risk. Typically, a bankruptcy involving credit card debt, medical bills or other unsecured debt will not lead to a loss of the family home. So, it is usually wiser to stay current on the mortgage, even if that requires defaulting on other debt.

Foreclosure Laws In Iowa

It is important to understand that foreclosure laws are very different from state to state. This discussion only applies to foreclosures of property in Iowa. Anyone who thinks a foreclosure case may be filed against them, or who has received papers they do not understand, should IMMEDIATELY meet with a lawyer.

There are a few things that can be said about foreclosure in Iowa in general. First, Iowa law is very protective of homeowners compared to many other states. In some states, a foreclosure can lead to homelessness within weeks.

In Iowa, a homeowner who immediately seeks legal advice is usually able to retain possession of the family home for at least seven months from the date the foreclosure suit is served. This allows them the time necessary to pursue a variety of options, including a private sale of the home, refinancing, workouts with the lender and, if necessary, bankruptcy.

Will I Owe Money To The Bank After A Foreclosure?

The answer to this question depends on how many mortgages the homeowner has. If there is only one mortgage, then the lender will probably file a type of foreclosure that will not cause the homeowner to owe money after the foreclosure is complete. This is known as “foreclosure without redemption.” Again, if you are facing a foreclosure, consult a lawyer to learn what type of foreclosure is involved.

If, on the other hand, you have two or more mortgages, then you may owe a considerable amount of money after a foreclosure. A Chapter 7 bankruptcy, assuming you qualify, will effectively deal with any remaining balance.

How Can Chapter 7 Bankruptcy Help Me Avoid Foreclosure?

If you are current, or nearly current, on your mortgage debt but will default if you must pay other debt (due to wage garnishments, for example), a Chapter 7 bankruptcy will relieve you of those obligations and improve your ability to pay it. If you are behind but could catch up by clearing your unsecured debt, a Chapter 7 case will similarly help you.

Under Chapter 7, your unsecured debts (medical bills, credit card debt and personal loans) will be discharged, and you will not have to repay them. If you can still pay your car loan or mortgage, you can keep those assets. You will also benefit from the automatic stay, which halts all garnishments, foreclosure and collection actions while the bankruptcy is in progress. It also stops creditor harassment.

How Can Chapter 13 Bankruptcy Help Me Avoid Foreclosure?

If you are behind and cannot catch up quickly, the lender is unwilling to negotiate, or a foreclosure case has already been filed, a Chapter 13 bankruptcy may be worth considering. First, you should be realistic about your ability to pay because if you cannot afford the home, you will probably be better off by giving up the home (after your seven months, if necessary).

If you think you can afford the home but need several months or even a few years to catch up, Chapter 13 may be the right path. It is the only option that will slow things down and allow you to try to save the home, assuming the lender is uncooperative and borrowing to pay off the loan is not possible.

Under Chapter 13, your debts will be consolidated into an affordable monthly payment. Chapter 13 takes three to five years to complete. If you complete the plan, your remaining unsecured debts will be discharged. You will also benefit from the protections of the automatic stay during the bankruptcy process. This means creditors cannot harass you in any way. It also means that no garnishment or collection actions can be taken.

Understanding Bankruptcy And How It Can Help You Stay In Your Home

Iowa has relatively favorable, pro-consumer laws that may present options you do not recognize. Negotiating with a bank or other lender on your own may lead nowhere, but with professional legal counsel on your side, effective approaches for you may include:

• Obtaining a mortgage modification via your lawyer’s research, prior experience and refined negotiating skills
• Filing Chapter 7 bankruptcy to eliminate other debts that are preventing you from making mortgage payments
• Pursuing debt relief through Chapter 13 bankruptcy – which may get you the time you need to catch up, allow you to eliminate a second mortgage or have other benefits
• Determining, through analysis of loan documents and other information, that your lender does not have the lawful right to proceed with foreclosure or has violated other laws

Why Choose Fitzgerald, Klesner, & Pavelich, PLC?

Practicing since 1991, Mr. Klesner focuses exclusively on helping our clients find and execute the appropriate debt relief solutions for their unique needs. With over 30 years of bankruptcy law experience, he is thoroughly prepared to help you determine whether bankruptcy is the right solution to your debt issues. If it is not, he will tell you right away. If bankruptcy is a good option, he will explain the benefits and any potential drawbacks.

Working with his assistant, Mr. Klesner provides knowledgeable, compassionate help to his clients – and will personally know the details of your case. He also takes care to make clients feel comfortable discussing their debt concerns. There is no judgment here, just help from a caring and experienced attorney. If you are struggling with debt or facing foreclosure, contact him today for a free initial consultation.

Get The Information And Guidance You Need As Soon As Possible

Whether your goal is to save your home or let it go while emerging in the best financial shape possible, we have the knowledge and resources to assist you. You will be treated with respect and compassion by an Iowa debt relief lawyer who will prioritize your case.

Contact Us Today. Free Consultations.

To schedule a free 30-minute consultation focused squarely on your mortgage-related concerns or other debt problems, call us at 319-320-4569 or send us an email now. Fitzgerald, Klesner, & Pavelich, PLC, has been a trusted resource for Iowa families since 1968.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.