Foreclosure, Chapter 13, Mortgage Modification an Effective Foreclosure

When a Mortgage Company files a Foreclosure, it essentially has one objective:

To sell your house at a sheriff’s sale to themselves or a 3rd party bidder.

The result is the same: YOU LOSE YOUR HOUSE!

What to Do?

Chapter 13. There is the tradition Chapter 13 to save your home, and now a second way to save your home through Chapter 13.

Traditional Chapter 13

You are now back on your feet. You are behind on your mortgage and need time to catch up. 

How does it work? What is required?

1. You have a regular income.
2. You can pay your current monthly mortgage payment.
3. You can pay the back mortgage (the arrears) over a time: generally, three (3) to five (5) years.
4. And you still have enough money left over to pay your other monthly expenses.

A New Chapter 13 with A Mortgage Modification

There  was a moratorium on foreclosures for a while. The result is many  homeowners are very far behind on payments: too far to catch up.

File Chapter 13 with an immediate application for a mortgage modification.

How does it work?

1. You have a regular income.
2. You can pay your current monthly mortgage payment.
3. You do not have to pay back the arrears.
4. You can pay a modest Chapter 13 payment. It can be as low as $200.
5. And you still have enough money left over to pay your other monthly expenses.

Your question? Will it work if I file Chapter 13 with an application to modify my mortgage?

Answer: Seventy Percent (70%) of mortgage modifications go through. Pretty good odds.

What if I Don’t Get the Modification?

You stopped the foreclosure while the mortgage application was pending. You haven’t lost anything. 

You can

1.  continue Chapter 13 and avoid a foreclosure deficiency,
2. you can convert your Chapter 13 to Chapter 7, 
3. or you can dismiss Chapter 13.

 You still have the same rights you had before. You can fight foreclosure in state court.