Foreclosure and Bankruptcy

Posted on October 1, 2010

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People who are in danger of losing their homes can appeal to the Bankruptcy Code, which gives homeowners facing foreclosure an opportunity to file bankruptcy to use the federal laws for another chance to save their home and cure the default.

This code, called Chapter 13, can allow a homeowner to pay off unpaid payments and late fees over the length of a repayment plan. In Chapter 13, the Debtor works out a plan so that the delinquency can be remedied over a three to five year period. Of course the debtor must demonstrate ability to  pay, and guarantee of a regular income. The act of filing for Chapter 13 Bankruptcy places an automatic stay against a foreclosure action.

According to the newslink below, federal agencies are encouraging mortgage lending companies to be more understanding and show a bit of lenience to homeowners in trouble:

http://www.mortgagenewsdaily.com/962007_Mortgage_Servicing.asp

 See Axsmith.net for more details.  Christine Axsmith, Esq. is a Washington, DC – based attorney specializing in foreclosure fraud, illegal foreclosure, real estate fraud.  Her credentials can be viewed at her LinkedIn profile.  The Axsmith Law website has a wealth of information for review related to elder law and foreclosure prevention. 

Other sources of valuable information are the AARP website, the Federal Trade Commission website and the HUD website.  See Axsmith Law web site to speak to an attorney.

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