When facing financial difficulties, it is common for people to wonder what kind of protections they may have against impending foreclosures. Foreclosure is a type of asset repossession that applies specifically to homes. At The Law Office of Kim Covington, our attorneys are often asked how they can help stop the foreclosure process so our clients can keep their homes while they work through and pay their debts.

In many cases, mortgage companies are willing to work with struggling homeowners. They would rather set up a repayment program to help people stay in their homes than go through the financial expense of a foreclosure. Homeowners can take advantage of this by contacting their lenders and working out a compromise that allows them to get current on payments so foreclosure is no longer an issue.

Home loan modifications may also help homeowners to keep their property. The U.S. Department of Housing and Urban Development states that there are currently many programs in place that allow homeowners to refinance or modify their first and second mortgages. The programs’ ultimate goals are to lower debtors’ monthly mortgage payments, interest due, the total amount owed on a home or a combination of these things in order to lessen the financial burdens these homeowners face.

Alternatively, Chapter 13 bankruptcy is one of the most commonly used ways to stop a house foreclosure. For it to be effective, interested parties must file their bankruptcy documents with the court before the repossession of the property occurs. In some cases, second mortgages may also be altered to more accurately reflect the current value of the property. Once the protections of bankruptcy are established and a repayment plan is made, debtors may be required to stay current with both their first and second mortgage payments while slowly paying past due amounts. To learn more about this topic, please visit our web page.