I have observed that a large number of homeowners are affected by today's extremely poor economy. I've started writing articles about the responses to the queries I'm hearing personally and seeing in the news. Today, I will discuss the viability of filing for bankruptcy as a way to avoid insolvency and losing your home.
First and foremost, bankruptcy is a highly complex legal procedure. You must demonstrate that you cannot pay your outstanding debt. You must demonstrate under oath that your income will never permit you to catch up. A court will require you to disclose every aspect of your finances. The bankruptcy trustee, who is typically a judge, will spend considerable time examining the intricacies of your life. A lawyer will charge you a lot of money to assist you in proving that you are destitute (this has always struck me as absurd). This is probably not going to be enjoyable. It will likely be degrading and completely unnecessary.
Before filing for bankruptcy, you must be insolvent. However, if you are still earning an income, even if it is less than it once was, and if your house payment is the only issue that is breaking your back, you may be eligible for assistance. Then embrace courage. Your bank doesn't want to take your property. They spend too much money on it. Because they were compelled to take back more homes than they could afford, banks are failing. Each foreclosure is extremely costly.
What a bank desires most is for you to make your past-due payments. Begin making payments on time. Maintain this for many years and be a loyal customer. That is what they desire. However, that is not all they will tolerate. The bank is aware that you cannot catch up by making three or four (or more) past payments simultaneously. They encounter this issue every day thousands of times. Therefore, catching up is their objective. However, they will accept any arrangement they believe will help you remain in your current position. Even if it means allowing you to make a single payment to catch up and reducing your payment amount to make it affordable.
This is possible through a Home Loan Modification. Yes, Home Loan Refinancing. You hear about it everywhere you go. In fact, if your lender assists you in modifying your loan and bringing you current within your means, the government will compensate them financially. The bank is compensated for assisting you, and they gain a customer instead of a property they do not want. Because you already have a loan, your credit score is disregarded for qualification purposes. Your delinquent payments can be reapplied to the loan. Most likely, the lender will eliminate your late fees and penalties. You are essentially receiving a """"do-over"""". So, ignore bankruptcy until later(much, much later).
In one or two days, most foreclosures can be stopped or postponed. The modification procedure is relatively straightforward, but it requires considerable time and effort. It is slow because all lenders and banks have too many troubled borrowers, and it is difficult to get them to focus on your specific transaction. As long as you are in the process, however, nothing negative can occur.
If you persevere and complete the process, eventually all modifications will be successful. You can do it yourself, but if you are unfamiliar with the Lending and Mortgage Industry, it is a daunting and intimidating process. However, there are companies that will negotiate your Home Loan Modification on your behalf. Some are excellent. Some not so nice. I am now a partner in a company that I recommended to several colleagues and clients and which was so effective at stopping foreclosures and completing home loan modifications that I became a partner in it.
I would suggest searching for a reputable company, requesting references, calling the references, and then discussing the entire process with that company. Request a refund guarantee. They are assisting you with your residence, your most prized possession. They must be able to deliver on their promises.""
" - https://www.affordablecebu.com/