For Homeowners
Bankruptcy: Your Permanent Mortgage Modification
Today’s tough economic times have been devastating for homeowners. Falling home values have left unprecedented numbers of people owing more on their home then it is worth (also called being “underwater”). It is estimated that nearly 25% of all residential mortgages are underwater in 2010.
Additionally, foreclosures are occurring at record levels in 2010. This trend seems likely to continue for some time as 1 in 10 homeowners are behind on their mortgage payments.
On top of this, many homeowners who have turned to the various loan modification efforts have found that they do not offer relief. In most cases, mortgage modification programs like HAMP simply create more stress and hoops to jump through and do not ultimately help you stay in your home.
There is help for underwater homeowners…bankruptcy. Many people do not know that bankruptcy is one of the most effective legal mechanisms to help homeowners in today’s market. This is because bankruptcy can reduce the amount you owe on your home by stripping off second mortgages and other liens and can also enable you to make up any arrearages you may owe over time, allowing you to stay in your home at a price you can afford. Additionally, if you simply cannot afford your home and it ends up in foreclosure or short sale, bankruptcy can limit your liability for the home, prevent you from being sued in the future and enable you to walk away with a fresh start.
If you are struggling with mortgage debt, we urge you to find out more about your rights in bankruptcy by contacting us to schedule a free consultation. Even if you are pursuing a mortgage modification or short sale, bankruptcy is an alternative you should understand.