Foreclosures On The Rise Across Nevada

During the Great Recession of 2008, 1 in 54 homeowners received notice of a home foreclosure action against them. While the current foreclosure rate isn’t quite that high, increasing costs of home ownership, like utilities, property taxes, and repairs, have made it harder than ever to afford a home. An unexpected emergency can aggravate the situation further, with 94% of home foreclosures starting after the homeowner experiences a loss of income due to extenuating circumstances. The home foreclosure rate is currently 18% higher than it was at the same time last year. Are you one of the many people facing home foreclosure, or fear it may be inevitable? Learn more about bankruptcy today from an experienced Nevada bankruptcy lawyer. Contact our firm for your free consultation today at 702-842-0700.

How Does Nevada’s Foreclosure Rate Compare To the Rest Of The Country?

Nevada isn’t the only state experiencing rising foreclosure rates, although it is up there in the rankings. Nevada currently ranks 5th in the nation for home foreclosures, with a foreclosure rate of 1 in every 2,747 housing units. The median cost of a foreclosed housing unit in Nevada is $492,500. The states topping Nevada for foreclosures, in order starting with number 1, are Florida, South Carolina, Illinois, and Delaware. Experts speculate that Florida tops out the list because of rising insurance premiums and HOA fees for a population that largely lives on fixed incomes. In Delaware, experts have hypothesized that residents lack the financial cushion to absorb financial shock, and changes reflect more dramatically due to it being a smaller market. But these explanations don’t apply to Nevada’s high foreclosure rate. Here, a large portion of the population relies on tourism and entertainment, industries that are suffering due to the cost-of-living crisis and political disputes. 

You shouldn’t feel alone if you’re a Nevada resident struggling with debt and other financial issues. When these issues spiral too far out of control, your housing situation may be jeopardized. The automatic stay that bankruptcy provides can stop home foreclosure as well as eviction, lawsuits, wage garnishments, and more. Don’t wait until it is too late to file for bankruptcy to stop a home foreclosure in Las Vegas. Schedule your free consultation with an experienced Nevada bankruptcy attorney today by calling 702-842-0700. 

Should I File For Bankruptcy To Stop a Foreclosure?

Losing one’s home to foreclosure has devastating ramifications for the homeowner, so they should make their best efforts to avoid it if possible. There is the financial loss of the home itself, the difficulty of finding a new living situation, the embarrassment due to a foreclosure’s public nature, credit damage, and more. But a homeowner may have already attempted to work out an arrangement with their lender before receiving a foreclosure notice with no success. When foreclosure is on the horizon and a lender isn’t willing to be flexible, bankruptcy can pause the foreclosure process and give the homeowner time to resolve their mortgage balance in arrears. 

Clearing debts is an obvious benefit to filing for bankruptcy, but another attractive feature that brings in debtors is the automatic stay. The automatic stay protects the debtor and their assets from the moment their bankruptcy petition is filed. With few exceptions, it lasts until the case is discharged or dismissed. The debtor can file for bankruptcy at any point until a foreclosure sale has occurred to activate the automatic stay and halt the foreclosure. But the debtor must become current on their mortgage once more before the case has been discharged, or risk the lender continuing with the foreclosure once that has occurred. Chapter 7 bankruptcy only clears unsecured debts and lasts several months. If the debtor can’t catch up on their mortgage during that time, they should consider chapter 13 bankruptcy instead. 

Chapter 13 bankruptcy provides numerous benefits to a homeowner facing foreclosure. Filing halts the foreclosure process, as long as the debtor keeps their case in good standing. Chapter 13 cases last 3 or 5 years when completed successfully, which is a long time to fend off a home foreclosure.  Chapter 13 bankruptcy gives a homeowner more time to catch up on their mortgage payments, with the balance in arrears spread out over 36 or 60 months. A chapter 13 debtor typically must pay off secured debts in full in their payment plans, but some jurisdictions make an exception for home mortgages. Another benefit to filing for chapter 13 bankruptcy is the chance to clear a secondary home mortgage under certain circumstances. 

Deciding if bankruptcy is right for your situation and choosing between chapters could stop a home foreclosure, but bankruptcy could have disastrous consequences if filed incorrectly. Let a professional lead the way so you can focus on the other areas of your life that have been impacted by an impending home foreclosure. Discuss your unique situation today with the Law Office of Erik Severino. Schedule your free phone consultation by calling 702-842-0700. 

Emergency Filing in Last-Minute Situations

If you have received notice of a home foreclosure, you should be learning more about your options as soon as possible. Some of those options may become unavailable to you the longer you wait. Your best option may be bankruptcy, but filing in a rush makes a petition more prone to errors that could be fatal to a case. Bankruptcy petitions are dozens of pages long, require detailed lists like a household inventory and a creditor mailing matrix, and may require complicated math equations. The debtor also needs to complete an online credit counseling course before filing, so their course completion certificate can be included with the petition. If a homeowner has waited until the final hour before a foreclosure sale to declare bankruptcy, they may want to utilize a skeleton filing to buy more time to draft a full and accurate petition.  

A skeleton bankruptcy petition is also known as an emergency bankruptcy filing. It is meant for just that- emergency situations. Instead of filling out various schedules and forms for their bankruptcy petition, a skeleton petition only requires basic contact and income information. This confirms that the debtor is eligible for the chapter of bankruptcy filed. The debtor has two weeks to finish and submit the rest of their bankruptcy petition, but the protections from the automatic stay begin with the skeleton petition filing. They must complete the first credit counseling course before the skeleton filing, but the second course is still due within 60 days of the 341 Meeting of Creditors. 

Facing imminent home foreclosure with little time to resolve the situation? Bankruptcy, particularly an emergency bankruptcy filing, may provide relief and security. Our team makes the process of discharging debts as simple as possible with flexible payment options and free appointments by phone. Schedule your free consultation today at 702-842-0700.  

Can Bankruptcy Solve Your Home Foreclosure Problems? Learn More With An Experienced Vegas Bankruptcy Lawyer

A home foreclosure will put your household’s entire way of life at risk. The stress of a home foreclosure drains mental health, which can result in physical health problems as well. Thankfully, there is bankruptcy to assist families in financial emergencies like these. Protect your home and all that you’ve worked hard for with the comprehensive powers of the automatic stay. Clear your other obligations so it’s easier to pay your expenses after bankruptcy discharge. As Nevada’s leading zero down bankruptcy law firm, we can help you take the first step towards stopping an eviction and starting over with a clean slate. When you’re ready, our firm can assist with a free consultation. Get scheduled with the Law Office of Erik Severino today by calling 702-842-0700.

Zero Down Bankruptcy Lawyers
Phone: (702) 842-0700
Email: info@vegaszerodownbankruptcy.com

Las Vegas Office
5552 Ashley Creek St
Las Vegas, NV 89135

North Las Vegas Office
7251 W Lake Mead Blvd
Las Vegas, NV 89128

Henderson
1489 W Warm Springs Rd #110
Henderson, NV 89014