Chapter 13 Bankruptcy and Foreclosure
One of the more worrying trends in Florida is the still incredibly high number of homes being foreclosed upon, with the state far and away the leader in foreclosure activity. In fact, as recently as February, Florida had the unfortunate distinction to be home to nine of the top ten U.S. major metro areas with the highest rates of foreclosure.
There are many reasons behind these high numbers of foreclosures, most important of which is the after effects of the most recent housing crisis which saw prices plummet and left many Florida homeowner’s owing more money on their homes than they are now worth. While the state does have a number of programs designed to help, such as the Florida Housing Finance Corporations HHF-PR program which offers up to $50,000 for homeowners owe more than 125% of the value of their home, many homeowners who want to keep their homes may not be eligible for these types of programs.
While programs such as these can definitely be a big help to homeowners’, they may not do much good if you also have other large debts that you are unable to pay back, if you’re otherwise unable to meet your mortgage payments or you simply do not qualify for these programs. In these cases, many people simply give up, as they believe there is nothing they can do to stop them from losing their home.
Still, if this sounds like you and foreclosure seems imminent no matter what, you may want to look into filing for Chapter 13 bankruptcy. In most cases, Chapter 13 bankruptcy will put an immediate stay to any foreclosure proceedings against you, allowing you to keep your home and giving you somewhere between 3 and 5 years to pay back all of your creditors, including the past due payments you owe to your lender.
In addition, in Chapter 13 bankruptcy may also be entitled to negotiate a modified mortgage with your lender. In fact, the US Bankruptcy Court’s in Florida allow you to pursue Loss Mitigation Mediation, where a mediator will be appointed to help you and the mortgage provider to come to an agreement about modifying your mortgage.
This means that not only will you most likely be allowed to keep your home, but filing a Chapter 13 may also allow you to negotiate more favorable mortgage terms.
Chapter 13 Bankruptcy Attorney
Although Chapter 13 bankruptcy isn’t the right option for everyone, if you have a pending foreclosure, the filing of a Chapter 13 bankruptcy may allow you to keep your home. So, if you are behind on your mortgage payments or worried about a possible foreclose, the professionals at The Law Office of Kelley Kaplan & Eller can discuss with you all of your possible options, including deciding whether Chapter 13 bankruptcy is right for you. With over 25 years of experience helping people in the West Palm Beach area with foreclosures, bankruptcy and other financial problems, we can help you regain your financial independence and keep your home.