We have been helping people get out of debt. We know how confusing and overwhelming filing for Bankruptcy can be. We want to make sure you understand what happens in Bankruptcy and what options are available to you. If you are struggling with high-interest credit card bills, medical bills, or any type of unsecured debt, we may be able to help!
1. Know Your Rights
Foreclosure is a legal term that refers to the process of repossessing property that was once owned by a homeowner who failed to pay their mortgage. Foreclosures happen when homeowners fall behind on their payments and lenders take back ownership of the home. If you have fallen behind on your mortgage payments, you may qualify for help if you follow these steps:
- Contact your lender immediately to discuss options for saving your home.
- Make sure you understand what your rights are under the law. You have the right to remain in your home until the end of the loan term, even if you default on your payment.
- Find out whether your lender is willing to work with you to avoid foreclosure.
- If you want to stay in your home, contact your local housing counseling agency. These organizations offer free services to help people facing financial problems keep their homes.
- If you decide to sell your house, find a reputable agent who specializes in foreclosed properties.
- Don't let your home sit vacant while you try to save it. If you're not using your home, the bank could seize it and auction off the property at public sale.
2. Get Pre-foreclosure Help
If you've been trying to make your mortgage payments for months without success, you might need some extra help. There are several programs designed specifically to assist homeowners in trouble. Here's how they work:
- Homeownership Preservation Program (HPP) - HPP offers assistance to homeowners who are having difficulty making their monthly payments. To qualify, you must meet certain income requirements and have had no late payments in the past six months.
- Home Affordable Modification Program (HAMP) - HAMP helps homeowners who owe more than their houses are worth. You'll need to prove that you cannot afford to continue paying your mortgage and that you have tried unsuccessfully to negotiate with your lender to lower your interest rate.
- Federal Housing Administration (FHA) - FHA loans require borrowers to put down only 3 percent of the purchase price of the home. In addition, FHA mortgages don't require private mortgage insurance (PMI). However, if you do choose to buy a home with an FHA loan, you should consider buying a home that is already built rather than building your own home.
3. Consider Selling Your House