Strategies to Avoid Foreclosure

Re-Publish this Article

<h1>Strategies to Avoid Foreclosure</h1><strong> Author: <a href='http://www.articleseen.com/profile_Mr William Hauselberg.aspx'>Mr William Hauselberg</a></strong><br /><p>The purchase of a home brings a joy that is unparalleled by any other feeling a person can experience. It is a dream-come-true. When the dream becomes threatened with an impending foreclosure, homeowners can take charge of the situation with the many options to avoid foreclosure proceedings that are available. The most important thing to remember is that the financial situation only has the power that it is given. Choose to take the reins and fight with every available tool, such as: Chapter 13 Bankruptcy This type of bankruptcy is a method that allows homeowners to stop foreclosure in its tracks. The process of this type of bankruptcy involves restructuring debts in a manner that still requires repayment of the debts but in a more consolidated way. The monthly payment is lower than the original payment plan, which makes it much easier for the indebted to meet the obligation. It is important to note that all mortgage payments from the date of restructure must be paid in full and on time to continue benefitting from the chapter 13 bankruptcy. Chapter 7 Bankruptcy Chapter 7 bankruptcies are far more lenient than chapter 13. There are no structured plans to worry about and all debts are relieved. Real estate can be exempt from the bankruptcy, allowing homeowners to remain in their house. The mortgage payments must still be made and the foreclosure proceedings will immediately stop upon filing bankruptcy. It is the most viable option for people who wish to start with a clean slate. Home Refinancing The government has created several programs in order to help homeowners who are in financial distress. Refinancing is one of the options offered to help avoid foreclosure. As long as all mortgage payments are up-to-date, the opportunity for Home Affordable Refinance Program (HARP) refinancing is possible. HARP refinancing is a federal program for people who have been unable to obtain a loan in a traditional manner because of falling home values. The homeowner will be able to continue living in the home while lowering the monthly mortgage payment. HAMP for Mortgages The Home Affordable Modification Plan (HAMP) helps lower monthly mortgage payments by adjusting the payment to be in better tune with monthly income. It is a sliding scale option that lowers the payment to 31% of the homeowner’s income. To be certain of an individual’s circumstances, income is verified prior to the change in payments. HAMP is part of the government overhaul for homeowners in danger of foreclosure and commonly results in a 40% reduction in the total monthly payment. That means over $1,000 in savings for the homeowner every month. An attorney will help sort through the massive confusion that is caused when dealing with a possible foreclosure. Lawyers are well-versed in the laws and the processes of bankruptcy and other options to avoid foreclosure. There are far too many choices to sort through without the aid of a professional attorney to reach the most feasible solution. Failure to hire an attorney to handle the situation could ultimately lead to the most dreaded end to the problem: foreclosure. It is a chance that is not worth risking. </p><strong>About the Author:</strong><br />The author has an immense knowledge on <a rel="nofollow" href="http://www.chapter7attorneys.com/content.aspx?page=foreclosure-bankruptcy">options to avoid foreclosure</a>. Know more about options to avoid foreclosure related info in his website.<p> Article Source: <a href='http://www.articleseen.com/Article_Strategies-to-Avoid-Foreclosure_263882.aspx'> http://www.articleseen.com/Article_Strategies to Avoid Foreclosure_263882.aspx</a></p>

Article Source : http://www.articleseen.com/Article_Strategies to Avoid Foreclosure_263882.aspx

Keywords : options to avoid foreclosure, chapter7attorneys.com,

Category : Business : Business