499 W. Plumb St., Suite 202, Reno, Nevada 89509


Foreclosure Avoidance

The troubles in the housing market and the economy have hit Nevada homeowners particularly hard in recent years, and foreclosure rates in Nevada have been among the highest in the nation. At the Darby Law Practice, Ltd. in Reno, our attorneys are committed to helping distressed homeowners explore their options and find the solution that best meets their needs.

For some homeowners, letting go of the property through a foreclosure or short sale may make sense, as long as an experienced attorney is on hand to make sure the homeowner does not remain liable for any deficiency after the sale or foreclosure. For others, keeping the home and avoiding foreclosure is a priority. For those homeowners, the Darby Law Practice helps individuals and families avoid foreclosure through Chapter 13 bankruptcy and other means. Our comprehensive bankruptcy practice also provides small business bankruptcy help and helps consumers and businesses alike deal with judgments and garnishments and other issues as well.

Foreclosure Avoidance in Reno

Programs such as the Nevada Mortgage Mediation Program or the federal Home Affordable Modification Program (HAMP) may or may not help you avoid foreclosure and stay in your home. While the majority of mediations under the Nevada Mediation Program avoid foreclosure, only a fraction of these end with the homeowner keeping the home. And a lender participating in HAMP is under no legal obligation to negotiate even a temporary loan modification or workout.

If keeping your home is important to you, a bankruptcy filing may be the best option and the one where avoiding foreclosure is the most certain. A Chapter 13 bankruptcy stops the foreclosure process and allows you to catch up on any missed payments by rolling them into your three or five-year payment plan and paying them off comfortably within your means. A bankruptcy filing can help your mortgage situation in other ways as well.

Second Mortgage Removal

If your home is encumbered with a first and second mortgage, and the property is worth less than the amount of your first mortgage, a Chapter 13 bankruptcy allows you to eliminate your second mortgage through a process known as lien stripping. With Chapter 13, you can strip the second mortgage lien, or home equity line of credit (HELOC), off of your home and discharge the debt in bankruptcy.

Reduced Mortgage Balance

In addition to stripping a second mortgage, there are ways to reduce the balance on your first mortgage in bankruptcy. For instance, Chapter 11 allows investment property debt to be reduced down to the current fair market value of the property, and this method applies to both first and second mortgages. Similar approaches under Chapter 13 allow you to cram down a mortgage balance to fair market value or bifurcate a loan into secured and unsecured portions, with the unsecured portion above the value of the property subject to discharge. In many cases, that new reduced mortgage balance can then be rewritten at a new interest rate and paid off over an extended period of time.

Reno Foreclosure Avoidance Attorneys

If you are behind in your mortgage payments or owe more on your mortgage than your home is worth, or if you have received a Notice of Default from your lender or loan servicer, contact Darby Law Practice, Ltd. right away to discuss your options with one of our experienced Reno foreclosure avoidance attorneys.


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