There are many options available to people who fall behind on their mortgage. Losing your home is not a foregone conclusion if you fall behind on payments or can no longer afford your mortgage.
Many banks want to avoid the significant costs involved in foreclosure and would rather modify a homme loan or payment schedule than simply foreclose on a home. At the Hedtke Law Firm we work closely with homeowners in exploring options to avoid foreclosure. In some cases, declaring bankruptcy may be the only or most effective means for keeping your home. In some cases banks are more willing to offer a loan modification to debtor who discharge all their unsecure debts in a Chapter 7 bankruptcy. In other cases, a Chapter 13 plan is required to show a debtor can afford a monthly payment that would allow a loan modification. We can evaluate your financial situation and determine how best to leverage your financial and legal rights.
The Hedtke Law Firm can prevent you from losing your home to foreclosure even if you are months or days away from a foreclosure sale.
Depending on your financial situation, it may be in your best interests to file for bankruptcy under Chapter 7 or Chapter 13 — especially if you have substantial credit card debt. Counterintuitively, filing bankruptcy can often improve your chances for qualifying for a loan modification or paying off arrearages.
A Chapter 7 contains a homestead exemption of up to $175,000. Second, if your other unsecured debts (such as credit cards) are discharged, you may have enough money to remain current on your mortgage payment. As a result, you should have enough money to either remain current on your mortgage or negotiate a loan modification with your bank.
If you do not qualify for Chapter 7, you may be able to file a Chapter 13 bankrutpcy. A Chapter 13 allows your debts will be reorganized according to a court-approved plan between you and your creditors. While you will be required to repay likely a small percentage of your debt over a three- to five-year period, the bank cannot simply foreclose on your home once your Chapter 13 bankruptcy has been approved. In fact, filing for Chapter 13 may be the most effective means of convincing your bank to modify your loan or renegotiate its payment schedule.
Life after bankruptcy or foreclosure involves a number of financial issues that must be taken into account and fully understood. There are options when facing foreclosure. Regardless of whether you’re a private homeowner, business owner, or are facing a HUD foreclosure, working with your lender is an option that should be pursued first. Our attorneys protect your rights and help clients work with banks in order to avoid losing their homes.
Contact the Hedtke Law Firm today to schedule a free consultation and discuss your situation. To schedule an appointment, call us today at 909 736-3111.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.