As more people are filing bankruptcy and losing homes to foreclosure, more banks are willing to work with homeowners to help prevent foreclosure in the first place.
Lenders may modify terms of your loan — especially if you have an adjustable-rate mortgage — accept partial payments, or even accept late payments. The key is to contact them when you first start having trouble paying your mortgage to try and work something out.
You can also ask for a short sale or a deed-in-lieu of foreclosure, but only after certain requirements are met. If your lender doesn’t want to compromise there are steps you can take, including:
- Contacting a qualified bankruptcy lawyer to find out what options you have and let him/her act on your behalf
- Contacting the U.S. Department of Housing and Urban Development’s (HUD’s) Home Ownership Preservation Fund to speak with an approved housing counselor
There are also programs out there to help you, including:
- The Home Affordable Refinance Program (HARP), which may allow you to refinance your current mortgage into a 15- or 30-year fixed-rate mortgage
- The Home Affordable Modification Program (HAMP), which may allow you to lower your monthly payment on your first mortgage to 31% of your gross income
If you're having trouble making ends meet, and want to stop foreclosure on your home, we can help. Castle Law Office has been handling bankruptcies for Kansas City clients from more than 14 years. If you need the fresh start bankruptcy can provide, call us today at 816-842-6200 to speak with an attorney. Or click here to email us and schedule your free consultation.