Bankruptcy Can Allow You To Catch Up On Missed Mortgage Payments And Save Your Home From Foreclosure
If you’re struggling to make your mortgage payments and have determined that the solutions listed in: I’m Falling Behind On My Mortgage Payments, Are There Ways To Fix The Problem?, don’t work for you, then a bankruptcy may be the best strategy to keep you and your family in your home.
Chapter 13 Bankruptcy Can Keep You In Your Home
A chapter 13 bankruptcy can allow you to put a repayment plan into place. This option requires that you have a form of income in order for you to make the new monthly payments to pay back your missed mortgage payments. Your total missed payments are added to the principal balance of your loan, with this new amount, a new interest rate is calculated and a new term is given. This can be a great option for those looking to save their home from foreclosure.
A chapter 13 bankruptcy can even stop a sheriff sale the night before it’s scheduled to happen, and can keep you and your family in your home.
But don’t wait until the last minute, it becomes harder to make a chapter 13 bankruptcy work with the more missed payments you have, because it makes the overall monthly payments higher.
“I was trying for months to get a loan modification but every time the bank told me I didn’t qualify. Then we found Todd Murphy Law and filed a Chapter 13 Bankruptcy right before our home was sold at a sheriff sale. Wow! Were we glad we did. We were able to pay back all our missed payments over 60 months and started to pay our mortgage again right away. A Chapter 13 Bankruptcy saved our home when a loan modification could not.”
-Jack, Chapter 13 Bankruptcy Client
What Are My Other Options?
If you don’t qualify for a chapter 13 bankruptcy but still want to save your home from foreclosure, discover how a chapter 20 bankruptcy could keep you in your home, read our post: What If I Don’t Qualify for A Chapter 13 Bankruptcy But I Still Want To Save My Home?