If you are currently facing foreclosure or you worry that you will find yourself in this position down the road, it is vital to take a careful look at your situation and understand strategies to prevent losing your home to foreclosure. From filing a court motion to stop foreclosure to mediation or modifying your loan, there are a number of ways you could have the ability to keep your home. Some people are able to keep their home through Chapter 13 bankruptcy.
Before moving forward with bankruptcy, review the ins and outs of the process. Ultimately, every homeowner is in a unique position and you need to go over options based on your individual circumstances.
Filing for Chapter 13 to stop foreclosure
According to the US Courts, Chapter 13 can help stop foreclosure and allow homeowners to catch up on back payments over a period of time. However, you must note that filing for bankruptcy does not always prevent foreclosure. For example, if your mortgage company finishes a foreclosure sale before you file a bankruptcy petition or you do not make required payments after filing for Chapter 13, you could lose your home.
Staying positive amid the threat of foreclosure
It is important to realize that you are not alone and that many homeowners continue to face foreclosure. From job loss to health-related financial problems, many Americans have difficulty staying current on their mortgage.
Foreclosure is often daunting, especially if you have family members counting on you, but try to remain optimistic. Some homeowners have the ability to stop a foreclosure by filing for bankruptcy and there are federal programs that allow some people to halt foreclosure proceedings.