Can’t Keep Up With House Payments?
Unexpected things happen in life that impact your finances in a negative way. When the situation doesn’t improve quickly, it becomes difficult to keep up with payments on a house. Defaulting on mortgage payments is a step closer to losing your home. Foreclosure is designed to force the sale of your home. How much time you have before the bank starts a foreclosure lawsuit depends on a variety of factors. Don’t wait too long. There is a point at which a foreclosure cannot be stopped. As soon as you find yourself behind on your mortgage; ask a bankruptcy attorney about how to do a mortgage modification.
Mortgage Modification or Mortgage Restructuring
You shouldn’t have to lose your home to foreclosure. One option is a to do a mortgage modification or otherwise known as a mortgage loan restructuring. During the home loan modification process, a new legal contract is negotiated and agreed upon by both the lender and the borrower. The new contract could modify all or just key points of the current loan terms. The idea is to ensure your new monthly mortgage payment is affordable enough to continue making payments as well as stay in your home.
Why Hire a Bankruptcy Attorney for Mortgage Modification?
If you’re in a desperate financial bind already, bankruptcy may do more for you, above and beyond saving your home. For example, if you’re still employed, but need to address other debts in addition to your mortgage, Chapter 13 Bankruptcy may be just what you need. Ch.13 can stop the foreclosure process while allowing the time to reorganize and possibly even reduce many other debts. The new budget will not only save your home; it will also create an attractive repayment plan and budget you can stay on top of.
If your debt load is far too large for a repayment plan, and your mortgage is severely underwater, a Chapter 7 may be your best option. Through Ch. 7 bankruptcy, a mortgage may be discharged. What makes it different from a Ch.13 is that a Ch.7 allows a person to eliminate certain debts instead of reorganizing them. Even if a mortgage loan was not reorganized or eliminated during a previous bankruptcy, it may still be addressed afterwards. In any case, an attorney who is familiar with both mortgage modification and bankruptcy should review your situation as soon as possible.
Hire Debt Advisors Law Offices
In 2017, the Wisconsin counties of Milwaukee, Kenosha, Brown and Waukesha had some of the highest number of properties involved in the foreclosure process. Our firm has offices in these areas as well as other locations in Southeastern Wisconsin. Our bankruptcy law firm is also familiar with foreclosure laws in Wisconsin. An attorney at Debt Advisors can be retained for as little as $100. If you hire Debt Advisors, your attorney will represent you through the entire process including, contacting your mortgage company and working out the details of your case. The first step is to request your free initial consultation.
Foreclosure Rates for Most Expensive Homes on the Rise
On behalf of Debt Advisors, S.C.
It seems as though no home value is safe in the current market, and the current crisis is affecting people from all degrees of wealth. While it may be easy to assume that the most expensive homes were the first homes foreclosed upon in the housing market crisis, that is simply not the case. In fact, even though the foreclosure rate in general has recently gone down, the rate on the most expensive of homes has gone the opposite direction and spiked.
In 2011, the Mortgage Bankers Association reported that the drop in foreclosures was at a rate of 28 percent. While this may be long awaited good news in a housing market seeing record lows, the foreclosure rate for the most expensive properties has skyrocketed since 2007. In this five-year span, the foreclosure rate has gone up by 115 percent for homes that are valued at least $1 million dollars. Even more startling is the facts that homes valued at $2 million or more saw the foreclosure rate increase by 273 percent.
So what’s responsible for these increasing numbers? One explanation may be that banks are not as open to mortgage negotiations as they were in the past. Also, some homeowners are left with no choice but to abandon their properties because the home’s value is significantly less than its purchase price.
Whatever the reasons may be, home foreclosure and bankruptcy will continue to be an issue that defines our nation’s economy. For many in Wisconsin and across the United States, bankruptcy or foreclosure may be the best options for the future.
Source: CBS News, “Foreclosure rate up on priciest homes,” Constantine von Hoffman, 02/28/12.
Increased Foreclosure Numbers in Wisconsin
On behalf of Debt Advisors, S.C.
Data on foreclosure rates across the nation show that Wisconsin experienced a significant increase in foreclosure activity in July 2011. With a 43.3 percent increase in the number of foreclosure filings from the previous month, Wisconsin’s experience contrasted with the declining numbers of foreclosure proceedings nationwide.
According to the U.S. Foreclosure Market Report published by RealtyTrac, a marketer of foreclosed properties, 4,534 Wisconsin properties received foreclosure filings in July, which is an average of one in every 571 housing units in the state. These numbers put Wisconsin tenth for the highest foreclosure rate in the U.S.
Nationwide, foreclosure filings have declined for 10 months in a row. The July numbers are 4 percent lower than June 2011 and 35 percent lower than July 2010, reported the Eau Claire Leader-Telegram. However, foreclosure filings, which include default notices, scheduled foreclosure auctions and repossessions, were received by one in every 611 properties in the U.S. in July – still an exceedingly high number.
James Saccacio, CEO of RealtyTrac, was quoted by the Leader-Telegram as saying the decrease in foreclosure filings was originally started by the “robo-signing controversy” that arose in October 2010, temporarily halting foreclosure proceedings. Now, though, Saccacio reports that the decline may be attributed to foreclosure-prevention programs at both the state and national level, including loan modification and mortgage-payment assistance programs.
People struggling with mortgage payments and other debt have several options to help stop foreclosures and other debt-collection actions. By filing for Chapter 13 bankruptcy, for example, an automatic stay is instated, stopping any foreclosure proceedings and blocking creditors’ attempts to collect money. An experienced bankruptcy attorney can advise people as to which option is best for their particular circumstances.
Source: Foreclosures Up in Wisconsin
Mortgage Modification Mediation Program Available for Chapter 13 Debtors in WI
On behalf of Debt Advisors, S.C.
The U.S. Bankruptcy Court for the Eastern District of Wisconsin employed a Mortgage Modification Mediation Program (MMMP) in Wisconsin this spring. Chapter 13 debtors are able to take part in the mediation program and participation is voluntary. The goal of the program is to help debtors who are beginning the bankruptcy process obtain a timely mortgage modification and keep their homes.
Although the participation in MMMP is voluntary, certain criteria must be met in order to be eligible for the program. Namely, an individual must be a Chapter 13 debtor and unable to afford the mortgage payments on his or her primary residence. The debtor must also have a regular income and have a mortgage balance of less than $729,750.
Advantages and Disadvantages to Participation
This new program may have many advantages for a debtor. Unlike many mortgage modification company scams, MMMP is court-sanctioned and many of the pitfalls that unknowing debtors experience with modification companies can be avoided. Additionally, a lender that agrees to enter mediation and fails to do so or enters an agreement and tries to back out can be sanctioned by the Bankruptcy Court. Additional advantages may include:
- Mortgage will be restructured instead of refinanced and may result in a reduced interest rate, principal balance forgiveness or changes to the repayment terms
- Modifications are permanent
- Mediation has a specific time period of 60 days
- Mediation negotiations are privileged communications and cannot be used in court later on
MMMP may have disadvantages to the debtor as well, such as the voluntary nature of the program. Participation is voluntary for both the debtor and the lender, meaning that one party may decide not to take part in the mediation program. The structured program also offers little flexibility regarding due dates and payments during the mediation process. If a payment is late or missed, an Affidavit of Default may be issued and the property may be in foreclosure with little time to object, known as a doomsday provision.
To learn more about the mortgage modification mediation program and whether it would be beneficial for you, speak to an attorney experienced in debt relief matters. If you are facing foreclosure or considering bankruptcy, there are options available to you. The best option will depend on your specific circumstances. An attorney can discuss your situation, answer any questions you may have and help you determine the best path for you and your family.