An unexpected job loss, divorce, or medical emergency can prevent you from paying your bills on time, and potentially risk a default on your mortgage. While foreclosure is sometimes inevitable, occasionally you can file for bankruptcy and take other strategies to slow down the process. Below are a few of these that can help create time to make other arrangements or get ahead of your payments.

How to Slow Down the Foreclosure Process

1. Contact the Lender

Foreclosure is a time-consuming and expensive process that many lenders would rather avoid. Often, you can convince them to work out a solution that brings your account current and allows you to stay in your home. Depending on the circumstances, they may offer to refinance the loan, renegotiate the mortgage, or suspend payments temporarily until you get your finances under control.

2. Contact a Housing Counselor

The Department of Housing and Urban Development (HUD) sponsors counseling agencies across the country. These agents have considerable expertise and resources to help during housing trouble.

If your lender was unwilling or unable to negotiate a solution, a counselor can sometimes delay the process or find another bank that will refinance your loan. However, you should always choose an agency that is sponsored by the federal government to ensure your safety.

3. File for Bankruptcy

While Chapter 7 bankruptcy cannot always stop foreclosure, it immediately halts all debt collection activity until after the conclusion of your case. This may give you several months to pay your past due amount or find another place to live. Many borrowers find that discharging their unsecured debt leaves enough room in their budget to catch up on mortgage payments and avoid foreclosure.

If you have the financial resources, Chapter 13 bankruptcy may allow you to keep your home. This program allows borrowers that are experiencing temporary financial issues to bring their mortgage current through a court-managed payment plan. However, you must show that you have the income to continue paying all of your debts, along with your bankruptcy payment, every month.

Filing for bankruptcy can be an overwhelming, confusing process without the proper help. With over 35 years of experience helping borrowers throughout the Wisconsin Rapids, WI, area, Bender & Bender will identify your options and help you make the best choices for your financial future. Visit the website for more information about their debt relief services. Call (715) 423-4400 to discuss filing for bankruptcy with an experienced attorney.