As the national state of emergency declaration begins to cease at each state level, many of the protections enacted over the course of the pandemic will suddenly disappear. For many Americans struggling to maintain their mortgage payment or avoid eviction, the harsh reality may soon set in. Eviction and foreclosure moratoriums will be lifted, leaving many facing a housing crisis. As foreclosure rates are set to explode, there are options to avoid losing your home while you resolve your debt obligations to regain financial freedom.
One option is to seek a hardship exemption. As long as you are current on your payments and do not have any other issues with your mortgage company, you may be able to continue to make your mortgage payments and avoid foreclosure. This exemption is available to those who can show that they are experiencing a hardship beyond their control. The hardship must be verified by your mortgage company and must be proven to the court. The hardship exemption is typically granted for one year, and you will be expected to resume your regular mortgage payments once the hardship has ended.
Another option to prevent or stop an active foreclosure is bankruptcy. By filing a Chapter 13 bankruptcy petition, which will allow you to rewrite your mortgage terms in order to pay a lesser amount over a longer period of time. In a Chapter 13 bankruptcy, your creditors will not be able to foreclose on your property, and you will have an opportunity to either keep your home or sell it. Filing for bankruptcy will stop the foreclosure process, and the bankruptcy court will decide if the foreclosure should proceed. The court will examine the facts and circumstances of your case and make a decision.
If you are falling behind on your mortgage payments, or are under an active foreclosure, contact a Dallas bankruptcy attorney to determine the best course of action to address your debt.