Protect Your Home from Foreclosure
If you are behind on your mortgage payments and foreclosure seems like a foregone conclusion, don’t give up. There are still ways you can protect your home and stop or delay the foreclosure process. Filing for bankruptcy, negotiating a loan modification or reaching a forbearance agreement with your lender are all viable options.
A winning foreclosure defense strategy must show that the bank doesn’t have the right to foreclose on your property. This requires the expertise of a practiced foreclosure attorney. An experienced foreclosure attorney can help determine your best avenue for protecting your home. An attorney can help take control of your debt and help you achieve your financial goals.
Ways to Avoid Foreclosure
Mortgage Loan Modification
Mortgage modification is one of the simplest ways to avoid foreclosure. Modifying your mortgage loan means convincing the lender to renegotiate the terms of your loan. This is in order to make your monthly payments more affordable. It can be done by reducing the interest rate on the loan, reducing the principal balance, or eliminating penalties and fees. Additionally, reducing the monthly payments or extending the time frame they are due are options.
Loan Forbearance Agreement
A forbearance agreement is one way to obtain short-term relief from a mortgage loan you can’t afford to pay. Is a temporary financial hardship keeping you from making payments on time? Your lender may agree to reduce or suspend the mortgage payments until your financial situation improves. However, once the forbearance period is over, you must resume your regular payments. You must also make up for any past-due amounts.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is the most popular type of bankruptcy. This is commonly because it is faster and easier than Chapter 13. It also typically results in a discharge of most unsecured debts. Relief from things such as medical bills, personal loans, and credit card bills can be a huge relief.
If you are up to date on your mortgage payments when you file, you can continue making payments. Additionally, you may be able to exempt the equity you have in your home. This may protect your home from foreclosure. Unfortunately, if you have a lot of equity in your home or have already fallen behind on your payments when you file, you may face foreclosure.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is different than Chapter 7. It establishes a repayment plan that allows debtors to repay all or a portion of their debts to creditors. This is done over the course of three to five years. This option is also known as a reorganization bankruptcy. Chapter 13 bankruptcy offers debtors various advantages over Chapter 7 bankruptcy. The biggest advantage is the ability to stop foreclosure proceedings while bringing delinquent payments current. If you are able to keep up with your current mortgage payments and comply with the court-approved repayment plan, you can protect your home.
Finding an Experienced Foreclosure Attorney
Buying a home is one of life’s most important milestones. One of the worst things that can happen after purchasing a home is watching that home fall into foreclosure. Foreclosure occurs when a homeowner defaults or stops making payments, on their loan. This is often the result of an unexpected life event, such as losing a job, or costly medical bills.
If you are facing foreclosure you may still be able to save your home. Even if the foreclosure process has already begun, you still have options. Contact a knowledgeable foreclosure attorney to learn more about the ways you can protect your home.