Foreclosure is something that nearly all homeowners try to avoid. It is damaging psychologically to be forced to move out. It is also damaging financially. Many homeowners who are struggling to keep up with monthly mortgage payments feel that it is impossible to stay in their homes. Fortunately, there are various ways that homeowners can stay in their homes despite the threat of Foreclosure in Fairfield Township. For example, it is possible to negotiate a loan modification with some lenders. It may be possible to stay in the home under chapter 13 bankruptcy. Dean Snyder, Attorney At Law can help homeowners learn about all of their options and help them choose the best course of action.
The common perception is that it is difficult to get a loan modification. Banks and investors do not want to lose money on their mortgages. This includes the interest earned on a mortgage. Banks do not want to reduce the interest rate on a fixed rate mortgage. Unfortunately, many people are falling behind on their mortgage payments because the interest rate and the minimum monthly payments are too high. Despite the perception that loan modifications are impossible to get, many homeowners have been successful at getting their mortgages modified. With the help of a bankruptcy lawyer, it is possible to convince many lenders to modify the mortgage to make it more affordable rather than face the prospect of another non performing mortgage with a Foreclosure in Fairfield Township. When lenders know that consumers have a bankruptcy lawyer, they are often more willing to make a deal such as agree to a loan modification or a short sale.
Another option for consumers struggling with their mortgages is to go through chapter 13 bankruptcy. Unlike chapter 7 bankruptcy, consumers who go through chapter 13 bankruptcy can stay in their homes. With a chapter 13 bankruptcy, consumers make affordable payments to creditors on their debts including mortgages, credit cards, and car loans. The amount of each payment is decided by the bankruptcy court. After the consumer has made a specified number of payments under the chapter 13 bankruptcy payment plan, the remaining non-secured debt is discharged. The affordable payments and the discharged unsecured debt can lead to financial relief.
Those who are struggling with their mortgages should seriously think about talking to a bankruptcy lawyer about their options. Many find out it is possible to stay in their homes.