The Atlanta Journal and Constitution recently reported that Bank of America will temporarily stop foreclosures so that it has time to make sure all of their documents are in order (Click here to read the AJC article). This past Friday, I received a call from a Chatsworth GA bankruptcy client who is wondering if this means their foreclosure scheduled for the first Tuesday of November 2010 will be stopped. I told them to call their mortgage company and the attorneys who are conducting the foreclosures and ask for something in writing that their specific foreclosure has been stopped.
In the past, I’ve had potential bankruptcy clients call me the day before foreclosure and ask to file bankruptcy because the mortgage company just called them and told them they are going ahead with taking their house. You can file a bankruptcy right before the foreclosure but I won’t do it. Some attorneys don’t mind filing at the last second but I hate it. I like to spend at least two hours with my clients at every sign appointment. My goal is to make sure that you feel comfortable swearing under penalty of perjury that every single document in your petition is correct. Don’t wait until the last minute! Other Georgia bankruptcy attorneys may disagree with me, but I think careful review of the documents is difficult to accomplish when you are under the pressure of filing at the last second.
Even if Bank of America does in fact stop your foreclosure this month, it does not mean you are out of the woods. All it means is that they are taking more time to make sure that they are perfectly and accurately conducting the process of taking your home. It might make sense to go ahead and file Chapter 13 so that any arrears can but put into the plan and any medical or credit card debt can be eliminated. Wiping out unsecured debt can make paying your future mortgage payments a lot easier.