Stopping Mortgage Foreclosure and Keeping Your Home
There are a number of ways that homeowners can not only stop the mortgage foreclosure process, but that also allow them to keep their home. Unfortunately, many borrowers are not aware of these options and so lose their homes or find themselves struggling with a mountain of debt. To ensure that this doesn’t happen to you, please call an experienced Philadelphia foreclosure defense attorney who can advise you.
One of the best ways to halt the foreclosure process, while also retaining ownership of one’s home is to enter into a repayment plan with your lender. This is an especially popular option for those who have only missed a couple of payments due to unforeseen circumstances, but who do not anticipate that there will be a permanent issue with making payments in the future. Generally, the earlier a homeowner tells his or her lender about any financial difficulties, the more likely that lender will be to work with the homeowner to come up with a repayment arrangement.
Many mortgage companies and loan services offer what are referred to as forbearance agreements, which allow for a temporary reduction or suspension of a homeowner’s monthly payment. Although the missed payments will eventually need to be made up through an increase in future payments, the brief stopgap that forbearance plans provide is often all that a borrower needs to deal with an unexpected job loss, divorce, or illness. Most mortgage companies give homeowners who utilize forbearance plans around six months, but up to a year, to catch up on payments.
Homeowners who are already behind on their loan payments or who realize that they can no longer make the agreed upon monthly mortgage payment, should strongly consider asking the lender to modify the existing terms of their mortgage. A modified mortgage will look like an entirely new mortgage, with a different payment, interest rate, and amount of time remaining on the debt. Those who choose to go this route should be sure to keep a copy of all paperwork submitted to their mortgage company to ensure that the lender doesn’t later claim that a modification was never attempted.
Filing for Bankruptcy
Homeowners who only want to stay in their residences temporarily may also have the option of filing for Chapter 7 bankruptcy, which if commenced properly, can stop the foreclosure process of the home for long enough to clear other debts. Homeowners who want to retain permanent ownership of their property, on the other hand, may want to consider filing for Chapter 13 bankruptcy. Filing a Chapter 13 petition immediately stops the mortgage foreclosure process and gives homeowners up to five years to get caught up on mortgage delinquency. This is only an option, however, for homeowners who have sufficient family income to resume paying regular mortgage payments, as well as a bit extra to cover missed payments.
Stopping Mortgage Foreclosure
Contact Louis S. Schwartz at CONSUMERLAWPA.com today to speak with an experienced Philadelphia foreclosure defense lawyer about stopping the foreclosure process. A member of our team can help review your situation and walk you through your legal options.