Understanding Foreclosure Options

When faced with foreclosure in the State of California, many homeowners feel as though they are running out of viable options. While there are programs in place to help some individuals who may be behind on their mortgages, other individuals may not be able to get a loan modification, or may have so much other debt that the modification is not practical. However, there are several potential solutions to the problem, and each has its pros and cons.

The first option to explore is the potential for payment arrangements. If you are only few months behind on your mortgage, your lender may be willing to work with you to help you get current again and stay on time with your monthly payments. Among the possible solutions you may wish to explore are repayment of arrears over several months, temporary forbearance, or other minor changes. If you need more extensive assistance, you may wish to ask for a loan modification. Your bank may be willing to move missed payments to the end of the loan, forgive one or more mortgage payments, adjust your interest rate, or some other type of adjustment that would make your mortgage payments affordable again.

If you cannot get assistance in this manner, you may want to consider other options, such as a short sale or deed in lieu. If you want to keep your home and other debts are keeping you from making timely payments, then filing for Chapter 13 bankruptcy may make it possible for you to work out a repayment plan that will satisfy some of your debts, while freeing up your monthly income so that mortgage payments can be made on time.

The solutions for foreclosure are as varied as the individuals facing foreclosure proceedings. Your situation requires a unique approach in order to be most effective. This is where having a reliable, knowledgeable California Bankruptcy Attorney can make a huge difference. Speak with one of our California Bankruptcy Attorneys today about your case – get a free, no obligation case evaluation, and make your decisions on what type of foreclosure option will work best for you.