A balloon payment often comes as the worst kind of surprise. You've been making monthly payments for years, only to suddenly have one lump sum due. For many homeowners in Atlanta and across Fulton County, balloon payments arrive when funds are already tight, but if you don't pay, you could face further action.
The Craig Black Law Firm helps Northwest Georgia residents who are facing foreclosure, wage garnishments, repossessions, and overwhelming debt, including Chapter 13 plans with loans that have balloon payments. See the counties we serve. When you call our office, you'll speak directly to Craig Black. He's the only person who works here, so you'll talk to a lawyer immediately. Reach out to us today by calling 678-888-1778 or filling out our contact form.
How Chapter 13 Stops a Foreclosure
When you file for Chapter 13 bankruptcy, an automatic stay goes into effect immediately. It stops most collection efforts against you. That includes any foreclosure sales, wage garnishments, or repossessions. Marietta and Cobb County residents frequently file in the final days leading up to a scheduled sale in order to keep their homes.
After your bankruptcy filing goes through, you'll have three to five years to make monthly payments toward your debt. In the meantime, you'll usually keep your home and vehicle, and your paycheck will stay free from garnishments while you catch up.
What Chapter 13 Can Do With a Balloon Payment
Federal bankruptcy law offers multiple paths to handling balloon payments that affect your real estate. Depending on your loan and the type of property you own, you may be able to:
- Distribute your balloon payment across multiple months: If the final payment comes due during your plan, the law may allow you to spread the balance over the remaining plan term, even on your primary home.
- Catch up on missed payments: Any past-due amounts can be wrapped into your payment plan.
- Restructure investment property loans: Loans on your rental properties and second homes can sometimes be modified more easily than your primary mortgage.
Your bankruptcy strategy should be based on the terms of your balloon payment loan, your income, and your budget. Whether the property is in Conyers or elsewhere in Rockdale County, we'll carefully review your paperwork to come up with the best option for you.
Don't Let One Balloon Payment Cost You Your Home
Timing is everything. Once the lender sells your home at a foreclosure sale, your options shrink. Filing before the sale is final gives you the best chance of protecting your home, whether it's in Sandy Springs or somewhere else in Fulton County. We'll review your loan and build a plan that fits your situation.
If you're dealing with a balloon payment that could lead to a foreclosure, don't delay. Call the Craig Black Law Firm at 678-888-1778 as soon as possible. You can also reach out using our contact form. Craig Black will personally take your call, which means you'll speak with a lawyer right away.
