Saving Your Home from Foreclosure, by Filing a Chapter 13
Home foreclosure has been on the rise, across the nation and there seems to be no end in sight over the next few years. This is not news to anyone who reads the newspaper, watches any “news” show, or listens to “news” radio.
I live in Michigan. I believe fairly soon, my state will soon have the number one position in the nation, for homes that will be served with foreclosure notices.
I don’t whether this is a good or bad sign but I can say that the number of cases regarding home foreclosure is increasing in large numbers with each passing day but it seems to be that given the present situation, I would soon be sent a notice myself in due course and I would have no choice but to simply bide my time waiting for it and I am quite certain that you also would need to find top San Diego, CA Bankruptcy attorneys near you to help you out of this situation and that is if you’re lucky to find one.
Just last week, it was estimated, within the city of Detroit, one out of three homes were at risk of foreclosure. I could not believe the figures were projected this high, yet this is what ran across the bottom of my TV screen as I watched “Good Morning America”, last week.
On my street alone, there are five homes with “For Sale” signs posted. Two of these homes are across the street from me and neither of these houses have sold yet, nor do I expect them to do so. Both of these houses have been on the market to sell, for over 6 months now.
If you are a homeowner that has been impacted by this unstable economy, finding yourself facing possible home foreclosure; there are options available. One of those options is, filing a Chapter 13.
Filing a Chapter 13 can stop a “sheriff sale”. Foreclosure actions against your home are stopped. Chapter 13s can be expensive in the long run, yet the process requires very little upfront cash, that is covered through the bankruptcy process. It is only later, when finances are brought under control, that repayment for the filing fees are then realized.
Filing for a Chapter 13 is complicated and should not be undertaken without sound financial and legal counsel. Yet it might be one of the only options available to a homeowner who is in default with their mortgage payments.
Chapter 13 plans are only available to those with a steady source of employment, retirement, or own rental properties. It should also be noted, individuals that cannot afford the monthly house payments to begin with, will not find any solutions in filing a bankruptcy under a Chapter 13.
All of the past due amounts are then incorporated into your new monthly payments you will be making, over the next few years. This can put an added financial strain on the homeowner later, if they are not prepared for it.
A Chapter 13 is a lot like a debt consolidation. The idea behind this type of bankruptcy, is to bring all of your past due debts, current over a reasonable period of time.
If filing a Chapter 13 is not your cup of tea, there are other options available to you.
With so many homes glutting the housing market, it is a safe bet that many lenders are willing to work with you.
Homeowners should look over all the options that are available to them, before making any decisions.
The first thing a homeowner should not do is, ignore the problem. If you cannot make a mortgage payment, make an appointment to discuss this with the lender, in order to find out what options would be available.
When you start missing your mortgage payments, not only will your credit score take a big hit, your options of keeping the wolf from your door, start disappearing quickly. The idea is, not to wait, until it is too late.
Working out a solution with the lender should be the first options to look at if you are in jeopardy of going into a default mod, on your mortgage. The department you should be speaking to, is the “Loss Mitigation” department, of your lending institution.
Your credit rating is at stake. If you can work out a payment method with your lender, you have an excellent chance of saving your credit.
A lot of mortgage companies are willing to work out an adjustable rate mortgage, changing it to a fixed-rate mortgage, that will work within your budget.
Do not turn away help. If the economy is hitting you hard and you are wondering how you will ever hold onto your home, now is not the time ignore the signs.
The National Foundation For Credit Counseling is an excellent resource for getting advice about your current finances and options that are available to you.
kThere are alternatives to filing a Chapter 13 to save your home. Knowing all of your options will allow you to make the right decision, before you are forced into defaulting on your monthly house payments. Remember, if you wait; it might be too late.