How To Avoid Losing Your Home To A Foreclosure


If you have found yourself financially struggling, you will want to make sure that you are doing what you can to save your home if you have fallen behind on the mortgage payments. To help you avoid losing your home to a foreclosure, you may want to consider the following tips.

File For Bankruptcy

Filing a chapter 13 bankruptcy may allow you to keep your home while you catch up on your late payments on the mortgage, as well as your other debts, through a payment planned that is approved by the courts. It is important to make sure that your mortgage company receives your bankruptcy case number as soon as you get it so they can be aware that you have indeed filed. If they have already started the foreclosure process, they have to legally stop and cannot move forward with the foreclosure as you are protected by the bankruptcy.

Ask For A Repayment Plan

Many mortgage companies will work with you and allow you to set up a repayment plan in order to help get you caught back up if your financial hardship is over with. If the foreclosure process has already begun, they can still stop it and give you a repayment plan, but the attorney fees and costs that the mortgage company ended up with will most likely be factored into your repayment plan. The exact amount or details of your repayment plan will vary depending on the rules of your mortgage company, as well as your track record of how well you have kept payment arrangements in the past.

Apply For A Loan Modification

A loan modification is similar to a refinance, but the loan will stay with the same mortgage company and your credit rating is not generally considered as a determining factor as it would be in a traditional refinance. The loan modification department will evaluate the value of your home against the amount of money that you owe. They may also look into whether your payments would be more affordable to you and therefore easier for you to keep up with if they are able to bring your account current and lower your interest rate. Mortgage companies would much rather you keep your home and keep up with the payments because they make money from the interest that you are charged for the life of the loan. 

With those three options in mind, you may be able to take action to stop the loss of your home from a completed foreclosure process. For more information, contact bankruptcy attorneys, like Jeffrey S Arnold Attorney At Law P.C.


29 June 2016

Getting Through Bankruptcy With Minimal Stress

Filing for bankruptcy has a tendency to make people feel ashamed and stressed out, and can turn into a big source of depression if not handled properly. As a counselor for couples and families, I have worked with various families throughout the years who have had to go through bankruptcy. And during this time, I have seen firsthand how, with the right mindset, going through bankruptcy can make people stronger in their financial lives and careers. I started this blog to provide information about the right things to do and the things that should be avoided while going through bankruptcy to minimize stress and maximize potential once the process is over. If you have any questions or concerns, hopefully they can be addressed on these pages.