With nearly one in three homes in America underwater, mortgage debt problems have been a large source of the financial burden experienced by families. The risk of foreclosure is an all too real threat, even with the current rate of default beginning to slow.
Unlike credit card debt, mortgage debt brings swift and steep consequences. Even a single missed payment can launch the foreclosure process, but how quickly that process plays out depends on the laws of your state. In Ohio, the foreclosure process can be initiated and have an eviction notification served in just a few short months.
Protecting Your Greatest Asset
Short sales are becoming a more popular option for homeowners seeking to avoid the consequences of a foreclosure, but this still requires losing rights to your property. Many people aren’t willing, or even prepared, to walk away from their home. In this instance, a loan modification is an option that could be considered. However, loan modifications aren’t always the easiest to come by, and your lender may carry strict qualification standards for approval.
For others, filing for bankruptcy is a good option for resolving mortgage debt problems. Chapter 7 bankruptcy can strip away second mortgages, penalties for missed payments, and other sources of your debt; freeing you up to better manage your mortgage payments in the future. A Chapter 13 can do the same, but rolls your debt payments into a plan that is spaced out for several years; allowing you to regain control over your finances. An experienced Dayton bankruptcy lawyer can review your risk of foreclosure and help you develop a plan for keeping your home as you work to resolve your financial troubles.