Do you have a Mortgage? Do you have more than one Mortgage? Is your Mortgage being foreclosed? Are you trying to modify your Mortgage?
Bankruptcy can do many things when it comes to dealing with your Mortgage issue.
Chapter 7 bankruptcy can eliminate your personal liability on the Mortgage Note. This can come in handy if you're letting your house go or if you think you may decide to let it go in the future. Chapter 7 bankruptcy can also temporarily halt a looming foreclosure sale. It can also slightly extend certain redemption rights.
Chapter 13 bankruptcy opens up some additional possibilities. In addition to stopping an upcoming foreclosure sale – Chapter 13 also affords you the opportunity to put together a Plan to catch up. Since a Chapter 13 Plan can run 60 months – this may prove to be ample time to work with.
Chapter 13 can also be used to strip junior mortgages (i.e. second mortgages, third mortgages, etc.) if the property is worth less than what is owed on the primary mortgage.
If you've got distressed rental properties, Chapter 13 may allow you to put together a Plan to pay only the current fair market value of the property.
Mortgage Modifications have become more popular in the last year or two. As recently as 5 years ago, obtaining a Mortgage Modification may have seemed as likely as spotting a unicorn. However, since this time more and more programs have come out. Filing a bankruptcy can't in and of itself guarantee you any type of Mortgage Modification – but it can open the lines of communication with the creditor and/or their counsel.
If you're experiencing hardship in dealing with your Mortgage issue or are curious to know what options you may have available – feel free to give us call. We've got offices in Sterling Heights and Brighton.