Dealing with financial hardship is stressful enough, but when your house gets put on the line it can make things worse. Foreclosure is a serious matter that must be taken care of right away if you want to keep your house. Depending on your state of residence the foreclosure process can be completed within 30 days, leaving you with a great sense of urgency.
Time To Act
If you have received a foreclosure notification, you may have as little as 30 days to resolve your debts. Non-judicial foreclosure states do not require the intervention of the court to complete a foreclosure, which means that your lender can have the case completed within a matter of weeks. Luckily, there are a few ways to resolve your mortgage debts and keep your home.
Traditional foreclosure solutions may be able to help lower your monthly payment or repay missed payments, but are difficult to secure when time is crucial. Mortgage modifications can be a lengthy process and there is no guarantee that (1) your lender will halt the foreclosure process while options are being reviewed or (2) your lender will even be willing to consider a modification.
Filing for bankruptcy has the advantage in dealing with foreclosures because it immediately halts the foreclosure process. When you file for bankruptcy, your lender must stop any foreclosure proceedings and wait for a resolution to be developed by the court. A Chapter 13 case is the best type of bankruptcy for resolving mortgage debts as it allows you to keep the house while repaying your debt over a period of time.