One unfortunate turn of events can disrupt your financial equilibrium and make it difficult to catch up on important payments. If you find yourself struggling to pay your mortgage, you are at risk of home foreclosure.
It is important to know your rights and options in accordance with foreclosure law. You may be facing a trying time, but there are still steps you can take to protect your family from losing their home in a repossession.
Catch up on mortgage payments
The ideal way to prevent foreclosure and stay on the best of terms with your lender is to pay off any missed mortgages outright. If this is not possible, you might negotiate a mortgage modification with your lender. If you can provide evidence that your current financial setback is only temporary, your lender may agree to settle for a lower monthly payment for a set period of time.
Consider filing for bankruptcy
Filing for chapter 13 bankruptcy can provide you the temporary debt relief you need to get your affairs back in order. Your lender can not move forward with the foreclosure process during the period of suspension granted by your bankruptcy status. Be aware that successfully filing for chapter 13 bankruptcy requires you to form an actionable repayment plan that can save your home.
The idea of a lender repossessing your house can be terrifying, especially if you finally move into your dream home. Catching up on your mortgage payments may seem like an uphill battle, but there are options at your disposal that will help you get the time you need.