If you’ve been receiving some letters about foreclosure from your mortgagee, you might be feeling overwhelmed as if you have no other options. You should know that you have foreclosure alternatives. While mortgage debt can feel quite oppressive, you should know that foreclosure isn’t the only way to get rid of your mortgage debt. In fact, you might even be able to avoid foreclosure altogether and catch up on your mortgage payments. Here’s how…
File for Bankruptcy & Keep Your Home
Does it sound like an offer only available to a select few? Well, you might be surprised to learn that thousands of people like you are filing for bankruptcy in order to save their homes from foreclosure. Here’s how it works:
Filing for bankruptcy protects you from having creditors hounding you day and night. Collections completely cease while you’re under the protection of bankruptcy. Usually, people who take advantage of this foreclosure alternative file for Chapter 13, a form of bankruptcy that restructures debts. It does not provide immediate solvency like other forms of liquidation bankruptcy (e.g. Chapter 7).
While you’re under the protection of Chapter 13, your debts are reduced and reorganized (including your mortgage debt), and you have more time to make your mortgage payments. This is a great method for anyone struggling with other debts in addition to mortgage debt!