In today’s recession-plagued market, many homeowners experience setbacks that cause them to miss mortgage payments. Banks are often inflexible in these circumstances, and can initiate foreclosure. This video explains how filing for Chapter 13 bankruptcy can help save your home.
When you file for Chapter 13 bankruptcy, the court grants an automatic stay that freezes the lender’s foreclosure proceedings against your house. Yet this does not completely solve the problem. Instead, the stay grants you more time to figure out the specifics of the mortgage delinquency and attempt to modify the mortgage. A judge has the power to adjust the terms of your mortgage to make the payments more affordable and allow you to pay off the loan in a reasonable amount of time.
Chapter 13 can help you keep your home by freezing your foreclosure process through an automatic stay. An experienced bankruptcy attorney can ensure that you are properly represented in federal court. Southern California homeowners struggling with mortgage payments should call Golden State Law Group at (619) 234-3333 for a free consultation.