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Bankruptcy can help save your home from foreclosure in few ways. Present laws state that filing a Chapter 7 or Chapter 13 bankruptcy can stop a foreclosure, but there must be a cure for your past due mortgage payments built in.
Chapter 7 bankruptcy provides an immediate, but temporary stop to the foreclosure process and may afford you a period of time to sell or refinance your mortgage loan. Each case is looked at on a case by case basis, so you should speak to an experienced bankruptcy attorney.
The most common bankruptcy to file for saving your home is Chapter 13 bankruptcy. This form of bankruptcy usually gives the filer time to cure mortgage arrears. The filer usually has to be in the position to make the continued monthly mortgage payments in addition to a plan to take care of back payments that are due.
Recent laws allow for morgtgage modification. This is the process in which the bank modifies an existing mortgage to make it more affordable for the borrower. This is much like a refinance, but instead of looking for a new loan, the existing loan is merely modified. This is a great method of lowering your monthly payments without actually refinancing, an option that is not available to some borrowers due to unemployment or bad credit.
Every situation is different, so check online resources to learn what the best option for you might be and always speak to an experienced professional for advice.
We have already filed a Chaper 11 (not 13), and my lawyer cannot force my lender to modify the loan. How can I contact my lender (Litton) to request a loan modification? They had offered us 3 before, but always look them back a week before we could start making the new payment. I want to have the opportunity to take advantage of the lower rates to eliminate going into forclosure later. What can I do?
Taking a loan is a process that can be done in very many different aspects. It can be taken in terms of furniture, a home renovation, a vehicle or even property. There is no great disadvantage in taking a loan. You only need to be organized.
Wow great post, I’m from Australia so I didn’t appreciate the seriousness of the issue over there. What a sham, i think there would be rioting in the streets if the same thing happened here. Unbelievable!
When one is taking a loan he/she must know how to repay the loan because the banks can not give someone money and the he/she does not have any way of generating money in order to repay the loan.
Find out exactly how much money you’ll be borrowing and how long you want to spend paying it off. Paying off loans quickly is more advantageous to you since the longer your loans have outstanding balances, the more you’ll pay in interest in the long run.