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Foreclosure: When You Fear Losing Your Home

Do you have bills mounting up? Are you are starting to panic about falling behind on mortgage payments? Perhaps you already have a fear of losing your home? This is a story we hear all too often at H. Lehman Franklin P.C. Regardless of the reason you found yourself in this predicament, foreclosure is a terrifying proposition. Losing your home could impact every aspect of your life. 

Speak to the Mortgage Lender

The bottom line is the mortgage lender is not your enemy. The lender may work with you, where possible, to help you meet your payment obligations. There are a number of loan modifications and repayment plan options lenders may offer. 

Reduced payments to help you catch up, which are agreed upon as a temporary solution, is one option. Deferring payments and reorganizing your mortgage so the delinquent principal and interest is moved to the back end of the loan is another option. Alternatively, the lender may allow a change in interest rate to help you better afford your mortgage payments. 

Government Support

There are free government resources that could be of benefit if you are unable to negotiate with the mortgage lender. Foreclosure will come around sooner than you think if the situation persists, so take advantage of any help you can get. Assistance with FHA loans is available from the FHA National Service Center. Here, you will learn about any federal programs you can take advantage of, depending on your circumstances. 

For conventional loans, the US Department of Housing & Urban Development provides help on their website. The US Department of Veteran Affairs deals with VA loans. If you are nearing foreclosure, there are agencies that provide access to foreclosure avoidance counselors who can offer advice and guidance in Georgia. 

Filing for Bankruptcy

A Chapter 13 bankruptcy will allow you to reorganize your finances and make payments to some or all of your creditors as part of a monthly repayment plan, including stopping a foreclosure before it occurs and providing a way to catch up on mortgage payments. You must propose the repayment plan to the bankruptcy court and creditors. There are a number of additional qualifying requirements including that you must not have over $419,275 in unsecured debts and you cannot have $1,257,850 in secured debts. 

If you are current on mortgage payments and unsecured debts are causing your money problems, Chapter 7 may help you. However, this is not usually the best option for those who are facing foreclosure, and other factors may determine if Chapter 7 is the best option for you. The automatic stay puts a stop to any creditor pursuit, which includes foreclosure on your home. This can give you extra time in your home or the chance to further negotiate with the mortgage lender. However, in a Chapter 7, the automatic stay will only last a few months. If you are behind on mortgage payments, Chapter 13 is often the better option.

In all cases where bankruptcy may help you avoid foreclosure, you should speak to a credible bankruptcy lawyer in Georgia. H. Lehman Franklin P.C. can provide excellence in representation throughout your bankruptcy case. 

Call the offices of H. Lehman Franklin P.C. if you are concerned your debts will result in the loss of your home through foreclosure. You can contact our team on 912-764-9616 or via email at info@hlfranklin.com