Even if keeping up with the mortgage was easy at first, some homeowners encounter financial problems that make those monthly payments difficult. When Pennsylvania homeowners miss too many payments they may end up facing foreclosure proceedings. While this is often a terrifying situation to be in, foreclosure does not have to be inevitable. When saving the home is a priority, Chapter 13 bankruptcy could be a smart option.
Many people feel embarrassed when dealing with money problems, but this does not mean that they should try and hide the problem. Instead, homeowners should speak directly with their lenders about any troubles they may be having with their monthly mortgage. It is often possible to work out an agreement that not only makes it easier to afford those payments, but to also lessen the chance of foreclosure. For example, some lenders will agree to a forbearance, which temporarily reduces or suspends mortgage payments.
Unfortunately, not all lenders are eager to work with borrowers. This could be because a forbearance or loan modification would not be sufficient to get a borrower back on track. For these borrowers, bankruptcy is a better option. When a person files for bankruptcy, an automatic stay is put into place, which temporarily ceases all debt collection attempts as well as foreclosure proceedings.
Chapter 13 bankruptcy is not a last resort, but an effective choice for a person who currently has more debt than he or she can handle. It is also a good idea for saving the home from foreclosure. This is because most Pennsylvania homeowners are able to keep their homes, vehicles and other important items throughout the bankruptcy process.