Chapter 13 for Mortgage Holders

One of the worst things that could ever happen is losing your home to a foreclosure, so if you are a homeowner facing financial trouble, you need to understand chapter 13 for mortgage holders.  Most of the time people who are going through a foreclosure do not know what their options are.  Many seek out refinancing on a home loan, still others seek to find an angel investor who could save them from that disaster known as foreclosure.  A select few, however, realize the benefit of filing for Chapter 13 bankruptcy for mortgage holders as a means of keeping their home and stopping the foreclosure process in its tracks. 

Chapter 13 for Mortgage Holders

Picture this.  You are living in the house of your dreams but bad times befall you and you have somehow sunk deep into foreclosure.  Naturally, you will scramble for a way to save your dream house, and stop the foreclosure without losing your sanity.  What should you do?  File a chapter 13 bankruptcy. 

If you file a chapter 13 bankruptcy petition, it will stop the foreclosure and allow you more time for your home to be saved.  Chapter 13 may force a bank to de-accelerate a mortgage loan so that you as a homeowner can have enough time to get up to date on your missing mortgage payments.  It is usually filed before the public auction of your house.  This is crucial because if you wait until your home is auctioned there is nothing that can be done. 

The sooner you file your chapter 13 petition in the Bankruptcy court, the sooner your foreclosure literally stops in its tracks.  This means no auction can occur and the bank cannot continue trying to collect on your debt.  After you file your  chapter 13 petition you will basically just pickup where you left off with your regular mortgage payments.  You do not have to double up on the payments, just pay what you normally would pay per month.  You can figure out how much you are in arrears for and then add it to your monthly payment that you submit to the mortgage loan holder.  They can not refuse your payments.  The chapter 13 plan usually lasts approximately three years.  So you have given yourself three years to get back on track with your housing payments.

Getting Legal Help

If you are facing foreclosure and you feel as if your back is against the way then you should definitely consider filing a chapter 13.  Do a bit of research and then contact a bankruptcy lawyer so that you can back on track with your life while keeping your home and your sanity.