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.