Save Your Home
Are you in danger of losing your home?
The prospect of losing your home is enough to give anyone severe anxiety. The financial and sentimental value of your home is important to you and your loved ones, and these are worth fighting for. However, based on your interactions with the lender so far, you might assume you have no way out.
There are multiple avenues you might pursue in order to save your home and put this chapter of your life behind you. It means that you’ll need to take action immediately by talking with an experienced lawyer. The longer you wait, the harder it will be to save your home, so you should always explore your options right away.
Trying to figure out what’s right for you and moving forward without a lawyer to help you could lead to mistakes made in your paperwork or the wrong strategy that leaves you no better off than when you started. To represent your best interests, you should have a lawyer who has been practicing in this area for years to guide you.
For more information on how to save your home, contact the experienced attorneys at McDonald Worley today for a FREE case evalution by filling out one of the forms on this page.
CHAPTER 13 BANKRUPTCY
Whereas Chapter 7 bankruptcy is a liquidation bankruptcy in which the trustee takes all of your assets to sell them and repay creditors, Chapter 13 may allow you to keep your home and some other assets like your car based on your proposed payment plan.
When you file for Chapter 13 bankruptcy, you suggest a repayment plan with no interest that will apply over the following 3-5 years. During that time, you can save your home or your car even if you fell behind on payments.
One payment will be made each month to the bankruptcy trustee directly rather than having to keep up with multiple payments. Since this one payment addresses all your obligations, Chapter 13 won’t affect your credit score as hard as it would with Chapter 7.
If you’ve fallen behind on your mortgage payments and simply don’t see a way to keep up with them as they currently exist, you should look into a loan modification. Loan modification is not the same as bankruptcy, but it’s often pursued by homeowners who want to save their home.
Much like the name suggestions, loan modification involves working towards better terms with the bank so that you can keep up with the payments. There are many complex factors involved in loan modification, and it’s in your best interest to be knowledgeable about the way to proceed. Your lawyer can help you determine if a loan modification is worth pursuing.
Negotiating these deals requires someone with insight about how the banks are likely to respond. If a loan modification is successful, however, it may allow you to save your home without filing for bankruptcy. Loan modification programs can help you get back on track without worrying about whether you can save your home.
MORTGAGE MODIFICATION MEDIATION
Foreclosure and related legal action is not the only option when it comes to trying to save your home. You may be eligible to participate in mortgage modification mediation. This is a streamlined process that helps with clarity, accountability, and time restrictions on your loan modification. This applies to all cases involving both commercial and residential property. This program applies to all bankruptcy types, including Chapter 13.
The modification of the mortgage, when going through this program, is often completed in a much more efficient fashion. Since both parties are asked to come to the table in good faith, you can benefit from more peace of mind, especially if you have a loan modification attorney helping you with your case. If there are any violations when loan modification mediation is pursued, sanctions may apply at the discretion of the judge.
In these cases, a trustee is appointed to make the mortgage payments if the modification is granted. This means the trustee will ensure your payments are properly applied and managed.
If you believe you’re at risk of losing your home and feeling overwhelmed, help is available for you. The sooner you reach out to learn more about your options, the better position you will be in to renegotiate or to file for Chapter 13 bankruptcy.
Although it’s nerve-wracking to deal with a complicated financial situation, you can’t afford to wait to get help. A lawyer can help you figure out which of these options is most applicable to your situation and will assist you with the necessary preparation and documents to move forward.