When it comes to dealing with foreclosure, Chapter 13 bankruptcy offers homeowners several options including a mortgage default or even a second or third mortgage. Chapter 13 is very popular among homeowners who needs help to abtain affortable mortgage payments that will give them the capability to keep their homes. You can help maintain your home through the help of Chapter 13.
Firstly, you can help save your home while you’re still repaying your debts when filing Chapter 13. The homeowners are allowed to restructure debt obligations when filing for this chapter including their mortgage; payments can be made during the duration of 3 to 5 years. Those late or even missed mortgage payments will be cured while those current mortgage payments are made.
Secondly, your second and third mortgages can be eliminated through Chapter 13. If you don’t have equity with your first mortgage to possibly cover your second or third then this may be the best option for you. There may not be enough equity to secure the value of the later mortgages if your home has dropped in value. The later mortgages may be decided to strip or may redefine them as an unsecured debt by the court, which will then be a less priority in a Chapter 13 case.
Thirdly, any foreclosure proceedings can be delyed or stopped through Chapter 13 bankruptcy. Any actions related to foreclosure can be halted by Chapter 13 through its automatic stay that goes into effect once you file this chapter. If your repayment plan includes provisions for curing your mortgage after being approved by the court, the mortgage lender won’t be able to enforce collection actions against you.
Finally, your mortgage modification may be granted. the court may modified certain mortgages especially if the mortgage amount is much greater than the value of the property. Also known as a mortgage cram down, there are exceptions to this option. This option may help you retain your property such as a farm, multiunit building or a mobile home.
Please call us at (813) 200 4133 to discuss (for free) if bankruptcy is suitable for you.