A job loss or a serious illness in the family can cause you to fall behind on your mortgage payments. When you miss three consecutive payments, your mortgage company will attempt to foreclose on your property. In some cases, a mortgage company will make payment arrangements with a homeowner to help them make up the payments. Mortgage companies have a number of options, including rewriting the mortgage to lengthen the term of the loan and make the current payments more affordable. Unfortunately, many homeowners are not able to make these arrangements with their lender.
Without a way to make up your missing payments, you have limited options if you want to keep your house. One of the most effective ways to save your family home and your investment is to file for Chapter 13 bankruptcy protection. A Bankruptcy Attorney in Washington, DC can help you decide if bankruptcy is the best option for your family.
When you file for protection in bankruptcy court, the lender is required to immediately stop collection actions on your loan. As long as you file for protection before a foreclosure sale has been scheduled, you may be able to make payment arrangements through the bankruptcy court to make up your missing payments. Typically, the arrears has to be repaid by the end of five years. In order to qualify for this kind of repayment plan, you will have to have enough income to make your regular payment in addition to the arrears every month.
If you have a second or third mortgage, you may be able to have them discharged in Chapter 13 bankruptcy. When the first mortgage equals or exceeds the value of your home, the bankruptcy court may determine that the second or third mortgages are unsecured and not require you to repay them. With less mortgage debt, you may be better able to afford to pay your first mortgage and the arrears.
For more information about how a Bankruptcy Attorney in Washington, DC can help you avoid foreclosure, contact an experience law firm such as Andrews Law. The sooner you contact a lawyer, the more likely you will be to enter into a Chapter 13 debt repayment plan and keep your home.
