If your home is at risk of foreclosure, the problem must be tackled at once and with the utmost care — one wrong move could spell disaster. However, by taking the proper steps, this disaster can often be averted. If your home is at risk of foreclosure, don’t start packing—take action! A few things you can do to save your home include:
A mortgage modification is an option which allows a homeowner to renegotiate their mortgage. It allows a person or family to catch up on any arrearages or reduce your interest rate. Oftentimes, during successful mortgage modification, you are able to reduce your overall monthly mortgage payment or reduce the interest rate on your mortgage. We know that this can be a stressful and time-consuming process, so it’s important to have an experienced team walk you through the mortgage modification process.
2. Chapter 13 bankruptcy
Chapter 13 bankruptcy allows you to stop foreclosure immediately. It also allows you to force the bank to allow you to begin making your regular monthly mortgage payments. You’ll have a 36 to 60 month time frame to repay any arrearages that have accrued on your mortgage. The mortgage companies must accept this arrangement.
3. Refinance or get a special forbearance granted on your mortgage
In a short refinance, the lender may agree to forgive some part of your debt and refinance the remaining debt into an entirely new loan. A forbearance is when a mortgage company agrees to temporarily suspend your mortgage payments for a specified period. Sometimes, a short-term financial hitch like a medical emergency or a decrease in income may not allow you to make mortgage payments on time. If your lender believes that you have a valid reason behind the missed payments, it may agree to help you out with a special forbearance. Depending on your financial circumstances, your lender may consent to a repayment in which you will temporarily owe lower payments; you may also get an interim suspension of payments. However, to secure this agreement, you will have to assure your lender that you will resolutely abide by the new repayment plan.
It is important if you’ve fallen behind on your mortgage payments, you act quickly; every day you remain delinquent. The mortgage company continues to add fees, costs, and other expenses to your loan. Remaining delinquent on your loan will start to lower your credit score.
If you are ready to pay down your debt at a rate you can afford, while keeping your financial future intact, Chapter 13 bankruptcy may be right for you. We are ready to help you decide. Contact us today at 866-343-8555, chat or email to schedule an initial consultation. We offer free consultations in bankruptcy cases.