Stopping Foreclosure and Saving Your Home
As a struggling homeowner, there are a number of steps you can take to avoid losing your home. The options available to you depend in part on whether you're having difficulty making monthly mortgage payments, or you have already fallen significantly behind on your home loan. At Ammerman & Goldberg "Bankruptcy" Law Office, our lawyers counsel and represent people struggling to keep their home and those facing foreclosure. Our clients are located in Washington, D.C., Maryland and Virginia.
Although filing for bankruptcy under Chapter 13 is often seen as a last resort, if you have other debt that you are unable to pay — credit cards, student loans, car payments — bankruptcy may be your only option.
How to Save Your Home and Stopping Foreclosure
There are various options available to homeowners struggling with mounting debt and mortgage payments. Our attorneys can advise and represent you regarding:
Debt priority: In the long run, falling behind on your mortgage payments leads to greater financial consequences than falling behind on credit card bills or personal loan payments. While delinquent payments on any debt will hurt your credit report and generate late fees, paying your mortgage not only stops foreclosure but also protects the equity in your home. For this reason, give greater priority to your mortgage payment before other debts.
Avoiding late payment penalties and foreclosure in the short term: If job loss or illness has impaired your ability to make monthly mortgage payments, contact your bank immediately. If you can provide financial, employment or medical documentation indicating your need for a short-term grace period, banks will often work with you toward a solution that avoids foreclosure, by reducing your monthly mortgage payment or waiving late fees. Sometimes, a bank may ask you to sell other property you own. If the property in question is not of vital importance to you, selling it may help you avoid filing for bankruptcy later.
Restructuring your mortgage payments: If you are unable to make your monthly mortgage payment, contact your lender as soon as possible to discuss the options available to you. Most banks do not want to foreclose on a home since they often lose money in the process. If you have a variable/adjustable rate or interest-only loan, ask if your bank can refinance your mortgage so you can reduce your monthly payment. This may extend the life of your loan and allow the bank to spread delinquent payments over time.
Bankruptcy: If you are unable to pay your mortgage and other monthly bills, filing for Chapter 13 bankruptcy can stop foreclosure on your home. Under the terms of Chapter 13, you will be required to submit a repayment plan to your creditors that they must approve. If your creditors believe they stand to recover more money through the plan submitted than through foreclosing on your home, the plan will likely be accepted. Through Chapter 13 you restructure your debt; you are required to continue making monthly payments on your home, but you do so according to a manageable schedule given your financial situation.
Questions? Need more Information? Contact Ammerman & Goldberg "Bankruptcy" Law Office
It's important to take pre-emptive action to stop foreclosure on your home. If you are struggling to make mortgage payments and have fallen behind on other bills, we can help you save your house.
To learn more about your debt relief options, please call 202-559-1428 for a free telephone consultation or contact our lawyers by filling out our online form.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.