The possibility of losing your home may be terrifying, but do not allow fear to paralyze your mind. The foreclosure sale process usually beings with a “Notice of Default,” which gives you 90 days to cure the default on your home loan payments. If the default is not cured, then you get a “Notice of Trustee’s Sale,” which is your 20-day notice that the auction is coming up. So even with an aggressive creditor who wants to sell your home at a foreclosure auction, you still get notice 110 days in advance of the sale date.
A Chapter 13 bankruptcy filing may give you the protection of the ‘automatic stay’ to stop the foreclosure, but you still need to propose a reorganization plan that requires monthly payments for 36 months to 60 months.
Also, the automatic stay might not be so ‘automatic’ if you have already filed previous bankruptcy cases that got dismissed. Your attorney may need to file a special motion to extend or to impose the automatic stay upon your creditors, if you already have previous bankruptcy filings that have been dismissed. So do yourself a favor and seek a consultation with an attorney without waiting until “the eve of foreclosure.”