All sorts of circumstances can lead to Foreclosure Woodbury MN. For some people, the inability to keep up mortgage payments due to a job loss is the origin of the problem. Others may experience an extended illness that makes it impossible to earn money and honor all debt obligations. When all efforts to make other arrangements are exhausted, the lender is likely to call the mortgage, trigger a default action, and begin the foreclosure process. During this time, the homeowner needs the help of an attorney to ensure that his or her rights are protected during the process. Deficiency Claims In some cases, the lender will be able to sell the property for enough to cover the remaining balance due on the loan, plus cover the costs associated with collection attempts, the foreclosure itself, and putting the property up for sale. When this happens, there is no balance remaining and the matter is settled. Unfortunately, this scenario does not always apply. When there is still a balance left after the property is sold, this creates what is known as a balance deficiency.
The lender has the right to seek further compensation by filing a deficiency claim through the courts. This means that even though the Foreclosure Woodbury MN is more or less completed, the lender can still come back and attempt to claim other assets in order to settle that remaining balance. How an Attorney Can Help Depending on the specifics of the debtor’s finances and holdings, there are ways to prevent the seizing of any assets. For example, an attorney with Lamey Law Firm Woodbury MN may look over the affairs of the client and determine that filing for bankruptcy would be the best approach. In particular, filing for a Chapter 7 bankruptcy would resolve the deficiency claim and also provide the client with the opportunity to make a fresh start. Keep in mind that the client must meet the state’s requirements for bankruptcy protection. This is based on the amount of annual income, and the ownership of any assets that the court would deem eligible for sale in order to partially settle any outstanding debts. While it is still possible that one or more assets would not be exempt from sale by the court, this approach will effectively reduce the amount of legal costs to the client and help to bring the matter to a swift resolution. Visit http://www.brokemn.com/ for more information.
