Missed payments, increased escrow, emergencies or illnesses interfering with staying on top of your mortgage payments. The bank has filed for foreclosure and you are riskingthe loss of your house. Now what?
There are a couple of options: mortgage modification and bankruptcy are two of the most successful options. A mortgage modification is an agreement that the homeowner and the bank holding the mortgage make that changes the terms of the mortgage. It can change the interest rates, modify the length of the mortgage, or add the missed payments to the end of the mortgage. There are a couple of different types of loan modification programs and the options available to you are dependent on which program your bank participates in. The best chance of success with a loan modification is prior to a judgment in foreclosure and with the assistance of an experienced lawyer.
A Chapter 13 bankruptcy can be used as a tool to protect your home. The Chapter 13 Plan can set up payments to catch up the missed payments while keeping up with the currently due mortgage payments. The Chapter 13 can also eliminate some of the other debt that was interfering with making the payments on the mortgage. An experienced attorney can help eliminate your debt and save your home.
