In a Chapter 13, you can keep your home, and you agree to pay your creditors via a payment plan. Filing for bankruptcy protection immediately stops the foreclosure action and stays your creditors from collecting any debts you owe unless the creditor gets the permission of the bankruptcy court.
What is a Wrongful Foreclosure Action? A wrongful foreclosure action occurs when the lender starts a foreclosure action when it simply has no legal cause. Wrongful foreclosure actions are also brought when the servicers accept partial payments after initiation of the wrongful foreclosure process, and then continue on with the foreclosure process.
The Real Estate Settlement Procedures Act (RESPA) is a Department of Housing and Urban Development (HUD) consumer protection statute created to help homebuyers. The law was designed to keep consumers well informed about closing costs and settlement procedures in real estate transactions. The Real Estate Settlement Procedures Act helps to keep the process of fees and costs associated with the purchase of real estate as transparent as possible for the benefit of the consumer.