It can be all too easy for people in Florida to run into problems paying their mortgage each month, especially when they are also struggling with other types of debt. In some cases, people may be able to negotiate a solution with the mortgage company. They may be able to make an agreement to modify the loan or seek a short sale. However, if these options fail, the lender may seek to foreclose on the home. Typically, this process does not start instantly; lenders do not start the process until a homeowner is at least two or three months behind on their mortgage debt.
If a homeowner is unable to pay the mortgage, they may want to think about their options to move forward and address the debt. They may be able to turn over the deed for the home to the mortgage lender without going through a foreclosure, or they may be able to obtain temporary forbearance on the loan. For people who are dealing with multiple types of unrepayable debt, they may consider filing for personal bankruptcy in order to help stay in their homes. If a person files for Chapter 7 or Chapter 13 bankruptcy, all creditors, including mortgage lenders, are subject to an automatic stay of collection attempts, including foreclosure.
Chapter 13 bankruptcy allows people to create a repayment plan to handle their past-due accounts. They will also need to keep up with current payments while dealing with this debt throughout the repayment period. Chapter 7 bankruptcy can lead to loan forgiveness, but people are less likely to be able to keep the home after the bankruptcy.
Insurmountable debt can make life unmanageable for people dealing with endless pressure and collection calls. A bankruptcy law – foreclosure attorney may be able to help people to navigate the process and seek Chapter 13 bankruptcy for debt relief.