If you are facing foreclosure, you may feel like you are out of options—but bankruptcy can provide powerful protection and a path to saving your home. Filing for Chapter 13 bankruptcy immediately halts foreclosure and allows homeowners to enter the U.S. Bankruptcy Court’s Mortgage Modification Mediation (MMM) Program, which helps borrowers negotiate more affordable loan terms.
In California, the fastest non-judicial foreclosure can take place in just 120 days. This means, if you are behind on your mortgage, you must act now to protect yourself and your home. Do NOT rely on your lender to help you. Your lender is not your friend and does not have your best interests at heart.
How Bankruptcy Stops Foreclosure
The moment you file for bankruptcy, the automatic stay goes into effect, stopping foreclosure proceedings immediately. This legal protection prevents lenders from auctioning your home while you work on a solution. Chapter 13 bankruptcy allows you the breathing room and legal support to restructure your arrears (past due payments). The arrears can be paid back over a 5-year repayment plan, or the arrears may be restructured through a mortgage loan modification.
Mortgage Modification in Bankruptcy
Many homeowners struggle to secure mortgage modifications through their lenders, and many are vulnerable to loan modification scams. Bankruptcy courts offer a structured loan modification process that forces lenders to negotiate in good faith. Through the Mortgage Modification Mediation (MMM) Program, borrowers can:
✅ Lower monthly payments by reducing interest rates or extending loan terms
✅ Address delinquent payments through restructuring
✅ Avoid foreclosure while negotiating a sustainable mortgage
Why Bankruptcy Is the Best Option
Unlike traditional modification requests that lenders often ignore or deny, the court-supervised process ensures transparency and greater chances of approval. Plus, Chapter 13 bankruptcy allows you to catch up on missed payments over time while seeking a modification.
Take Action Before It’s Too Late
If you are struggling with mortgage payments or facing foreclosure, bankruptcy can give you the time and tools to save your home. Contact us today for a free consultation, and let us explore the best path forward to financial stability.
Our mission as bankruptcy attorneys is to provide guidance, dignity, and support to those facing financial distress. If you or a loved one are struggling with debt, know that there is a path forward, and we are here to help. Call (844)894-4440 to schedule an appointment with Jenny L. Doling. She has handled more than 7,000 cases over the past 25 years, and she personally meets with each client.
Author: Jenny L. Doling, Esq., LLM Taxation
CA State Bar Certified Bankruptcy Specialist
Secretary and Board of Director of NACBA
President of the San Diego Bankruptcy Forum
Serving Bankruptcy Clients throughout California and
Tax Clients Nationally