If you've received a foreclosure notice, don't automatically assume that you will lose your home. You have options, and it's important to understand the benefits and drawbacks of each. Below, bankruptcy law attorney Brian Cahn of Brian R. Cahn & Associates, LLC, in Cartersville, GA, discusses a few ways to potentially stop foreclosure and hang onto your home.

File for Bankruptcy

One of the most effective ways to halt seizure of your home is to file for bankruptcy. Both Chapter 7 and Chapter 13 bankruptcy filings result in an immediate temporary stay on any foreclosures in process. This can buy you some valuable time to figure out your next steps. But a bankruptcy also comes with some disadvantages; your credit rating will take a hit, and it will show up on your record for 10 years. For many clients, the decision requires weighing the potential financial ramifications of bankruptcy against the possibility of losing one's home.

Seek a Loan Modification

You also may have the right to pursue a loan modification. With this path, you will work with your mortgage lender to reach mutually agreeable repayment terms that are more conducive to your financial limitations. This option is one that can take some time, so be sure to start it well before your foreclosure is put into action. Your attorney can help you get the modification you need while ensuring your lender is following all applicable laws and regulations.

File a Lawsuit

There are two types of foreclosure: judicial and nonjudicial. With judicial types, the process is passed through the court system. With nonjudicial varieties, a lender claims your house without the help of the courts. In Georgia, most residential foreclosures are nonjudicial, and this is good news for homeowners. You could sue your lender if they have violated any aspect of the law at any stage of the process. If they can't prove they own your debt, or they made major errors along the way, you have every right to file suit against them, possibly stopping your foreclosure for good.

Start exploring ways to put an end to your foreclosure, and contact Brian R. Cahn & Associates, LLC. With more than 20 years of experience, they help clients facing financial challenges across Northern Georgia. Call (770) 382-8900 or visit their website to schedule a free case evaluation.