Bankruptcy can save and protect your home in many different ways. One of these may be just what you need. Or you may use them in combination.
We’ve got 15 distinct ways that bankruptcy can either save your home now or protect it in the near future. Here are the first 7—the remaining 8 we’ll give you next time:
...If you’ve fallen behind on your mortgage, it’s very hard to catch up. It may even seem impossible. Chapter 13 makes it possible.
Let’s say you can’t pay your monthly mortgage because of a job loss or some other major financial hit. The missed payments can pile up fast. The amount you’re behind gets huge fast. It usually takes quite a few months before your home would be foreclosed. That gives time for the missed monthly payments to pile up. For example, if your mortgage payment is $1,700, six missed payments put you $10,200 behind. And that doesn’t count late fees and other likely charges assessed to your account.
...You have much, much more time to catch up on unpaid mortgage payments, as well as any unpaid property taxes.
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These 10 tools, especially used in combination, can defeat your mortgage debt and other home-based challenges.
A few blog posts ago we said that while Chapter 7 “straight bankruptcy” strengthens your hand with your secured debts, Chapter 13 can be much stronger. One way that Chapter 13 is stronger is in enabling you to keep things you own which have a secured creditor’s lien on them. Indeed, that’s probably the most common reason for filing a Chapter 13 case—to keep your home, vehicle, and/or other possessions at risk of repossession.
...If your second (or third) mortgage is not backed by any equity in your home, you can “strip” that mortgage off your home’s title.
Our last two blog posts were about using Chapter 13 “adjustment of debts” as a practical way to catch up on late mortgage payments and property taxes. You always have to get current on property taxes and virtually always have to with your primary mortgage obligation. Chapter 13 gives you the time and protection to do this.
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