Stopping Foreclosure

At the peak of the financial crisis the State of Michigan saw dramatic increases in the number of homeowners who were facing foreclosure.  As the foreclosures skyrocketed, the values of Michigan homes plummeted.  Michigan, as well as much of the nation, was in a death spiral.  However, due to action by the Federal Reserve and the White House the housing crises was ended and over time the surplus of homes on the market has started to decrease.  Add that to the mortgages companies willingness to hold onto some of their inventory and we now have a recovering marketplace.
As the values of homes in Michigan increase, mortgage companies are once again beginning to increase the rate of their foreclosure filings.  Homes that were once considered not to be worth the costs of the foreclosure process are now being targeted as potential money makers for mortgage companies that are once again on a mission to make a profit at all costs.  Due to this fact many homeowners are seeing themselves faced with a foreclosure on a home that they haven’t made payments on in over five years.  For many of these individuals they haven’t even known who owns their mortgage for years.  Payments were not an option.  Now they face foreclosure on their home and they need to know where to turn.  However, when they call most bankruptcy firms they are told that they are too far behind on their mortgage payments for a Chapter 13 to be successful.  They are turned away often by law firms who refuse to even take the time to sit down with them and try and come up with a solution.
I am here to tell you that for may of these individuals Chapter 13 is absolutely an option.  While it is true that a Chapter 13 bankruptcy cannot force a modification onto a bank, that does not mean that a Chapter 13 is not an excellent place to seek a modification.  A Chapter 13 plan can be filed in good faith that proposes to seek a plan modification while the Chapter 13 case is pending.  This strategy allows the Debtor to be protected by the automatic stay while the Debtor and the bank work towards a modification to save the home.  While there is no guarantee of success, this strategy is often successful in modifying the mortgage.  The bottom line, if you are told by an attorney that a Chapter 13 cannot help you because you are too far behind on your mortgage, seek a second opinion.
 
 
Second Chance Legal Services is a bankruptcy law firm located in Madison Heights, MI.  While we are located in Oakland County, we service Wayne, Oakland and Macomb County residents.  As Detroit Bankruptcy Attorneys we specialize in helping individuals escape their burden of debt in order to get a fresh start on their bright future.
Because of our small size our clients get individual attention.  You will have the same bankruptcy attorney throughout your case whether you are in a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy.  Your attorney will help guide you through the bankruptcy process in order to help you get a successful discharge of your debt.
It is important to note that Macomb County Bankruptcy Attorneys, Oakland County Bankruptcy Attorneys and Wayne County Bankruptcy Attorneys all deal with the same judges and trustees.  This is because all Michigan Bankruptcies are filed with the federal bankruptcy court in Detroit, MI.  For this reason, it is important that you choose an attorney not by location but rather by how comfortable you feel with them when you meet.  If you don’t feel comfortable with their knowledge, their experience or their demeanor you should seek out an attorney that you do feel comfortable with.
If you are interested in speaking with a Detroit bankruptcy attorney from Second Chance Legal Services, please contact our office at 248-629-6367 for a free initial consultation.