The assumptions made by forecasters are sometimes incorrect. Even the most optimistic of buyers can’t help to be a little cautious because in this fast-moving marketplace. With the purchase of a new home, consider that things can change very quickly. Some people purchase homes they really can’t afford in a tight situation. When abrupt changes occur, it can impact your ability to pay bills. If you’re faced with foreclosure, it’s important to know about Chapter 13 bankruptcy and how to save a home.
Foreclosure is the legal process whereby a bank or mortgage takes the real estate title, due to the homeowner’s failure to make mortgage payments. Although the foreclosure crisis may be over, and the market is showing some optimistic progression, hundreds of thousands of homeowners across the U.S. continue to find keeping up with mortgage payments a struggle. This is why our message is so important; if you are facing foreclosure, there are options available that could save your home.
Chapter 7, otherwise known as ‘liquidation bankruptcy,’ will allow you to eliminate a deficiency balance owed to your mortgage company, if your home is sold for less than the outstanding balance owed to the mortgage company. However, Chapter 7 will not provide the opportunity to catch up with over-due mortgage payments and will not provide the long-term protection that a Chapter 13 can.
Chapter 13 Bankruptcy
Rising interest rates and the fragile balance of our economy makes foreclosure a real threat. For many people, Chapter 13 bankruptcy can be a very powerful tool that stops foreclosure and saves your home. In fact, Chapter 13 is the driving force behind many bankruptcy petitions. Generally, Chapter 13 must be filed before the mortgage company sells your home, but as soon as you file Chapter 13, the “automatic stay” goes into effect. This stops the mortgage company from foreclosing on your home. For more information on how bankruptcy can stop foreclosure, get first-hand advice from a bankruptcy attorney. Contact Debt Advisors Law Offices directly for a free consultation, while time is still on your side. 414-755-2400.