When a homeowner is in danger of losing their home to foreclosure, it is imperative they understand their options for saving their home. Sometimes, the best option is a combination of chapter 13 bankruptcy and loan modification services in Hagerstown.
How Can a Homeowner Save Their Home?
If a homeowner is in danger of foreclosure, it is imperative they act quickly. Waiting too long can start the foreclosure process, making it more difficult for them to be able to pull themselves out of this legal issue.
One of the first things a homeowner needs to do when they realize they will have trouble making their payments is to contact their mortgage holder. There are sometimes helpful actions the mortgage holder can take to help a homeowner avoid the loss of their home.
With loan modification services in Hagerstown, a homeowner may be able to be approved having their loan modified for a certain period of time. This helps them to avoid foreclosure and grants them time to catch up on their payments in arrears while keeping their monthly payments current. The sooner a homeowner seeks these services, the greater the chances of them being successful.
Chapter 13 Bankruptcy Can Help Homeowners Avoid Foreclosure
If a homeowner has done all they can to avoid foreclosure but is still finding it difficult, the answer may be chapter 13. This type of bankruptcy prevents creditors, including mortgage holders, from further pursuing any collection activity, including foreclosure.
When chapter 13 is in effect, a homeowner is given three to five years to pay off the debts they owe. They must follow a structured payment plan that pays their debts each month and must keep their current mortgage payments paid throughout the bankruptcy period so they can avoid the loss of their home.
If you are dealing with the possibility of losing your home, it is imperative you seek help with loan modification services in Hagerstown. A lawyer can help you determine if you qualify for chapter 13 and whether or not you are a good candidate for loan modification.
