2 Ways To Save Your Home From Foreclosure

Posted on: 11 August 2017

The thought of losing a home is scary for everyone. Unfortunately, financial crises happen and some families are faced with the prospect of foreclosure.  If you are facing foreclosure, it is important to carefully explore your options before your lender takes possession of your home. To help you get started on finding a resolution, here are a few solutions that might work for you:

Ask for a Forbearance Agreement

Your lender likely offers the option to sign a forbearance agreement that would help you to avoid foreclosure. The agreement is simple. Your payments would be temporarily reduced or stopped until a date that is determined by you and the lender.

A forbearance is a good option if you know that your financial setback is a temporary situation. To qualify for the agreement, you will have to prove that you can pick up payments again in the future. The lender will assess your situation and determine whether a forbearance would be beneficial for both parties.

It is important to note that you will be required to pay off the arrears and keep up with the current payments. You can choose to pay the arrears in a lump sum or you can increase your current payments until you are caught up.

File for a Chapter 13 Bankruptcy

Some families choose to walk away from their home once there is a danger that a foreclosure will occur, but if you want to keep your home, there is another option. You can file for a Chapter 13 bankruptcy. The bankruptcy would allow you to catch up on what is owed to the lender and keep pace with your current payments.

If you are experiencing other debt issues, filing for Chapter 13 can be especially beneficial. You can also wrap your other debts into your payments and catch up on those.

A Chapter 7 bankruptcy is also an option, but it is more focused on discharging debts. If you are not planning to keep your home, it is a good option for getting rid of any debts that remain after the home has been repossessed and sold by the lender. An attorney can help you sort out which option is right for you.

In addition to helping you understand which bankruptcy option is best for you, the attorney can help explore other legal options that you have for keeping your home. Remember, the earlier you involve the attorney, the more time you have to explore your options.

Contact a legal foreclosure defense team for more information and assistance. 


The Journey to Success

Ever since I was in college, I’ve been extremely interested in business. I like to follow and study what famous individuals do well or do poorly in their businesses and how they fix their mistakes. Recently I've been following different individuals who've faced various bankruptcy issues. Thankfully, they learned from their many past business mistakes. If bankruptcy had not been an option for them, who knows where these corporate role models would be today and how their businesses would be doing. On this blog, I hope you will learn how a bankruptcy attorney can help you improve your current financial situation.

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