Concrete Steps to Prevent Foreclosure

Foreclosure is a nightmare to any home owner. You buy a home, you pay your mortgage costs and your family feels safe and secure in the shelter of your own property. Fate often upsets this idyllic state and creates major upheavals in the normal lives of individuals. The loss of a job, a major illness, a divorce, disability or death in the family can cause your finances to go awry and you may end up paying the ultimate price of losing your home to a foreclosure if you default. If you are on the verge of defaulting and considering your next move, do not despair as there are a few ways you can prevent the foreclosure of your home. If you are on good terms with your lenders it is best you directly communicate your issues to them and ask them to make some considerations. Your lenders might be willing to negotiate a more affordable repayment plan. Ask them to delay filing for a notice of default. Negotiate a working solution that is suitable to you and your lender so that you can pay off your debt at terms which can help you tide over your present predicament or until you can arrange for other finances to repay the mortgage debts. Your lender might agree to extend amortization. You may even consider refinance.

If you are unable to come to any understanding with your lenders you might consider seeking legal help. Legal counsel may suggest using Chapter 13 Bankruptcy. Chapter 13 bankruptcy can help you avoid foreclosure, lawsuits, repossession of a vehicle and other properties or wage garnishment. The use of Chapter 13 will enable you to reorganize your debt and help you back on your financial feet. Although there are laws to protect those undergoing temporary financial difficulty, if the creditors have strong legal counsel you may not be able to fight them and are liable to suffer the loss of your properties. You may need legal help to counter their moves and protect you and your assets. Under this plan the debtor can seek a time period of 3-5 years in which to pay off all or part of the debts. The debtor must be able to show he or she has a “regular and stable source of income” in order to be eligible. When you file for Chapter 13, an automatic stay is imposed on the actions of all your creditors including proceedings of foreclosure. Arlington, VA home owners facing foreclosure can consult with experienced lawyers to prevent the loss of their property.