There may be nothing more frightening for a family than being unsure if it can catch up on a mortgage or if permanent action to save the home is needed. One option that more and more people have turned to recently is a loan modification. While a loan modification may be a tempting and helpful resource for some Florida homeowners, others may want to pursue other options or at least fully understand what other options may be available given their financial situation.
The banks are typically eager to work out some kind of deal because, despite the impression they may give, banks don’t want to foreclose on a property. If you investigate the bankruptcy option, you may see that it is one way to avoid foreclosure and get back on track over time. Chapter 7 bankruptcy in particular is helpful as other debts are discharged, and then the extra money that was going toward paying down those unsecured debts can now be used to catch up on mortgage payments.
One other benefit to filing Chapter 7 bankruptcy over seeking a traditional loan modification is that the amount of back payments due on the mortgage may be written off. That can depend on the specifics of the situation. For some homeowners, this amount of back due mortgage can be a massive source of stress and anxiety.
The recession caused home values to plummet and put undue strain on Florida families already struggling. The best defense against losing a home and protecting your family’s future is understanding and having reliable information about the best options for your unique situation. Our website can provide valuable and up-to-date information about your options when it comes to loan modification and bankruptcy in general.