Stop Foreclosure

In America we don’t just own a house, we own a home.  That is part of the America Dream.  Because of that fact, Americans have a unique emotional attachment to their house.  Whether to save a home becomes more than a business decision with dollars and cents, but instead an emotional decision regarding a homeowner’s past, present, and future.   However, the reality is that in order to keep your home you must be able to make your payments.  As the economy in America went from bad to worse many Americans were unable to save their homes.
Now that the economy is starting to improve more and more Americans are able to find work for the first time in months or years.  They are now in a position to save their home from the delinquent payments that they have missed.  However with large delinquencies and mortgage companies that are more interested in the bottom line than the American Dream, many with the means to save their home do not have the know how.
For individuals who find themselves facing foreclosure, there are a few options that can be used to help save their home.  First, individuals can negotiate a forbearance agreement with the mortgage company, placing the delinquent payments on the back end of the loan.  Second they can negotiate a mortgage modification that lowers their interest rate, spreads the loan out up to 40 years and reduces their payments, all while bringing the mortgage contractually current.  Finally individuals can file for Chapter 13 Bankruptcy protection.
Which option is right for any individual client involves a fact specific analysis that focuses on the individual circumstances of each specific home owner.  If a loan modification can resolve all of the financial instability that was caused by the prolonged unemployment it may very well be the best option for the client.  However, if there is additional debt and financial instability the home owner may find themselves in a situation where a Chapter 13 Bankruptcy could reduce or eliminate unsecured debt, strip off and release second or third mortgages and bring the first mortgage contractually current over a period of 3-5 years.  Only a qualified bankruptcy attorney with knowledge of both mortgage modification and Chapter 13 Restructuring options can best advise you on a way forward.