If you are behind on your mortgage payments or if you are already in foreclosure, bankruptcy may be able to help you save your home.
A Chapter 13 bankruptcy is usually the best way to save your home. As with a Chapter 7, it can discharge your non-mortgage debt. But more importantly here, it provides you with a 5 year payment plan on your past due mortgage payments, and it will “strip” a Second (or Third or Fourth) mortgage off of your property when there is no equity.
For some, a Chapter 7 bankruptcy will provide temporary relief from foreclosure, however it will not prevent the eventual foreclosure of your home unless you file early enough (e.g., before you are in arrears). Once filed, you may be able to discharge other debts and free up money to make your monthly mortgage payments or better qualify for a loan modification directly with your lender.
If you are facing foreclosure, or considering it, or think you are near to one, call us for a free evaluation. We can also share with you the value of other options – such as Loan Modifications.
Wow Mr. Flate!
Wish I’d known this when the lending crash was going on. In 2008 I walked away from a nice home after trying to sell it for over a year as well as having worked on getting loan Mods done!
My business is in Public Records Research and of course we crashed like a stone when clients were disappearing daily and work done was not paid for!
Took a Ch 13 to keep my S-Corp intact and saw it through all five years and Final Forgiveness Judgement as well as going back to some of the debts forgiven such as local service providers for the business and paying them so we could rebuild relations again.
But I never knew I could have kept my home and that is the only part overall somewhat regret, especially in this market now!
Good to know.
Saved for future reference! Can also help others this way.
Great info!
The biz is fine and we now have a 16-year brag on it too!