Facing a home foreclosure is stressful, but the situation is not hopeless. Debt relief lawyer Robert A. Schwartz, in Rochester, NY, explains what to do if foreclosure is looming. Falling behind in your mortgage payments does not have to result in a home foreclosure, and generally, lenders don’t want to foreclose on homes. It costs them thousands of dollars in fees and expenses to foreclose, hold, and resell a property. If you’re facing foreclosure, contact your lender to discuss alternatives before the foreclosure process starts.

There are several alternatives if you fall behind in your mortgage payments. Lenders can modify loans to reduce or extend payments. They can also delay enforcing their right to collect payments, which is called forbearance. If you want to sell your home to avoid foreclosure, the lender can approve a short sale, which is a sale for less than the amount owed. Alternatives available to you depend on many factors such as the lender, the type of loan, your reasons for not making payments, and your ability to resume payments.

An important consideration in handling a foreclosure is whether your home has equity. If you owe more on your mortgage than what your home is worth, evaluate whether it is wiser to keep it or sell it, and what mortgage amount you can afford to pay monthly. Examine whether you can increase your income, or eliminate other debts. Filing bankruptcy stops all collection actions, such as foreclosures and wage garnishment, and relieves credit card debt.

No matter how far behind you are in your mortgage payments, Chapter 13 Bankruptcy provides a means through which your payments can be caught up.  In Chapter 13 your Attorney will formulate a plan by which all your mortgage arrears will be paid..The plan will also make provisions for all your debt.  The mortgage arrears will be paid in full and the unsecured debt, such as credit cards, may be paid a percentage of their balance without interest.  Chapter 13 lasts for 3-5 years which will often allow you to catch up the mortgage arrears on terms which are more affordable. 

When you face a home foreclosure, or want to talk to a debt relief lawyer about bankruptcy, contact Robert A. Schwartz, in Rochester, NY. Call (585) 334-4270 to schedule a consultation, and visit his website for more information.