How can she prevent foreclosure? 3 Answers as of August 20, 2010My friend is facing foreclosure and I want to try to help her out. She has already filed for bankruptcy once. I believe that bankruptcy was filed in 2005. Can she file again or are there other ways to prevent foreclosure? The economy has been very rough on her and she had to take a pay cut. Her income is far less than it used to be and the bank has increased his payments.
Klinger Law Center | Linda Klinger
Your friend can contact her lender and inquire about foreclosure prevention options they offer such as a loan modification or a forbearance. She may want to consider filing a Chapter 13 as that can help address the arrearages on her home, but whether or not she will be able to afford a Chapter 13 is another matter. She should also look into short selling her property. Your friend should consult an attorney before she takes any of the above steps as there are tax ramifications, issues with junior mortgages if there are any, and many, many other factors to be weighed before going forward.
Answer Applies to: California