I Can’t Pay My Mortgage; What Now?

Can’t pay your mortgage?  Wondering, “what now?” The good news is that there is a way to save your home and help get you out of debt, but timing is everything.

Defaulting on Mortgage Home Loan

When a mortgage loan is established, it basically means that the buyer agrees to pay back the lender within a determined time and for a specific cost.  When payment is not made, the lender has procedures to handle the situation.  Most mortgage lenders have some sort of “grace period.”   Even if you’re payment is late, if it arrives within the grace period, you may avoid a late fee.  However, if you have not attempted to contact the lender to negotiate payment and the grace period has expired, the lender will assume that your mortgage is “in default.”  They will make attempts to contact you, and to collect.  If these attempts are unsuccessful, the lender will begin the foreclosure process.

A mortgage loan is considered a “secured debt,” meaning that the lender can ultimately take back your property if the loan goes into default.  File for Chapter 13 bankruptcy to save your home.

Home Foreclosure Facts

• A foreclosure is started when a summons and complaint is filed by request of your lender.
• Charges to your account continue, even after it has been deemed as “in-default.” Your mortgage company may charge for property inspections, property preservation services, legal fees, postage, etc.
• The longer the mortgage is in default, the more difficult and expensive it becomes to bring the account current.
• The bank may serve an eviction noticecannot take possession of your home until Foreclosure is complete.
• You have a limited number of days to dispute information you have been served.
• Contact a bankruptcy lawyer as soon as possible to discuss how to stop the foreclosure from proceeding, and save your home.
• If you want to take advantage of a Chapter 13 bankruptcy, it must be done before the mortgage company sells your home.
• All foreclosures must through a court.
• There is a redemption period is the minimum amount of time you have in the home before the house is sold by auction.
• If your property forecloses, it is public record.
• Foreclosure will have a negative impact on credit score making it difficult to get loans in future.

Visit the Foreclosure Resource Center for answers to more of your questions.

The longer you wait to do something, the fewer options you may have.  Don’t fall victim to mortgage relief scams or home rescue scams.  Talk to an experienced bankruptcy attorney today.  The consultation is free.