No matter what it was that caused you to fall behind on your mortgage payments, if you are now able to at least keep up with regular monthly payments but are having trouble catching up the past due amount, you might want to continue to read further. Make sure that you are considering the following ways you might be able to avoid the foreclosure of your home.
Apply For Loan Modification
If you now have enough income to support the monthly payments and had a legit reason for falling behind in the first place, you might be able to qualify for a loan modification. This is where they roll your payments forward so you are automatically caught up. Your interest rate might be lowered, which could result in lower monthly payments. Also, the mortgage companies will generally escrow your taxes and insurance if that was not already done.
Ask For A Repayment Plan
Should you find that you are no longer dealing with the financial problems that put you at risk of foreclosure in the first place, then you might qualify for a repayment plan. All you have to do is ask the collection department, answer their questions about your income and expenses, agree to an arrangement, and then stick with it.
File For Chapter 13 Bankruptcy
If all else fails and you are running out of time before you lose your home to foreclosure, you might need to take a drastic measure. By quickly running to an attorney's office and filing for Chapter 13 bankruptcy, you will be able to stop the foreclosure process. Simply filing the bankruptcy papers and obtaining a file number stops the foreclosure process in its tracks because all creditor collection proceedings must stop. If you have all of your bills in hand, you could have a file number in a matter of a couple of days so it can be a fairly quick process. With an approval from the bankruptcy courts, you will be able to begin a court ordered repayment plan while you are dealing with your bankruptcy.
In some states, you will find that you actually have several months before the foreclosure process is complete. Therefore, you might just have time to sell it if none of the previously mentioned suggestions are able to work out for you. Selling the home instead of allowing it to be foreclosed on will not only save your credit, but you might get to walk away with some money depending on the amount of equity you have in the home.
As you can see, there are several options to consider when trying to save your home from foreclosure. If you must, talk with a financial advisor or an attorney like Howard S. Goodman Bankruptcy Attorney to see which route would be best for your particular situation and get the process started. After all, this is not a problem that you want to try to forget about as though it will just go away on its own.