Understanding Foreclosure Options - Fresno County Bankruptcy Lawyers

Before the recent fall home prices due to the housing collapse, the outlook on foreclosure options was bleak for many individuals. Missing a few payments meant that foreclosure was inevitable, as banks were often unwilling to work with homeowners who had been trapped by rising mortgage interest rates and increasing payments. Now, however, the financial picture has changed dramatically, and there are several options available for individuals who are in danger of facing a home foreclosure. These options include payment arrangements, loan modifications, Chapter 13 bankruptcy restructuring, and in those cases where the owner can no longer afford to make payments, deed in lieu and short sale arrangements.

If you are only a couple of months behind on your mortgage, making payment arrangements directly with the lender is the simplest solution for avoiding an escalation of the situation, which could lead to foreclosure proceedings. Payment arrangements vary based upon the circumstances surrounding the arrears, but in general, you can expect to have the past due payments spread out over a few months while you continue to make on-time payments on your mortgage.  If you are more than a couple of months behind due to an unforeseen circumstance, you may be able to work with the bank to get a loan modification. These are generally more detailed than an informal payment arrangement, and may include moving missed payments to the end of the loan, adjusting the interest rate, or other options.

If you cannot afford to make your mortgage payments any longer, you may still be able to avoid foreclosure. By arranging a short sale, or deed in lieu of foreclosure, you can relinquish your home without worrying about a foreclosure on your credit report. However, in the case of short sales and deed in lieu arrangements, you must be certain that you meet the requirements set by your lender. Additionally, there may be some additional financial obligations involved with the transfer of property ownership, for which you will be held responsible.

Despite these options, not everyone will be able to come to an acceptable arrangement that avoids foreclosure. Filing for Chapter 13 bankruptcy in Fresno County is one way in which individuals can retain their assets and still get out from under the specter of foreclosure. By entering into Chapter 13 reorganization, you may be able to not only avoid foreclosure, but take advantage of substantial financial benefits as well. The best way to make a decision about the type of solution that will work best for you is to speak with a trained Fresno County Bankruptcy Attorney who has taken the time to review your case.

Our firm has years of experience working with individuals throughout Fresno County when it comes to Chapter 13 bankruptcy filings. We understand how these laws can help you to attain financial freedom, stop creditors, and eliminate debt - giving you a fresh start. We also understand how these same laws can help you to keep your home and stay out of foreclosure. Talk to us today; we offer a free initial case evaluation that can help you to better understand the laws that are on your side. Avoid foreclosure and give yourself the peace of mind that you deserve.