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Harris-Courage & Grady, PLLC Jan. 17, 2016

Here’s the bottom line:

If you file bankruptcy, you have a better chance of saving your home from foreclosure.

We see people all the time trying various methods to save their homes on their own. Many others get ripped off using out-of-state “help” that doesn’t actually help them at all. The mortgage companies are primarily unresponsive to these efforts because there is no one to hold them accountable.

A recent study conducted by Princeton University and the Social Security Administration found that families filing bankruptcy had a higher chance of saving their homes from foreclosure than those who used other methods. The study followed over 500,000 individuals.

Using Chapter 13 bankruptcy, we have several tools to save your home from foreclosure. We have helped thousands of families avoid foreclosure by using Chapter 13 bankruptcy. One common way to save your home from foreclosure with a Chapter 13 bankruptcy is to pay the arrears back over a three to five year period of time and resume making the regular monthly mortgage payment.

The best thing about this option is that the mortgage company must accept the plan.

In addition, the Bankruptcy Court in Upstate New York created a new program called “Loss Mitigation“, specifically designed to help families to keep their homes. Although it is a voluntary program, many of the mortgage companies like to use it because they find it easier to work through attorneys than with individual homeowners.

Many times, the homeowners do not understand what information is required by the banks, so the banks are not able to do a workout. If an attorney is involved, the attorney can help the homeowners understand what documentation and information is needed to get a successful outcome.

The other major benefit of the Bankruptcy Court program is that the home owner has a judge and an attorney overseeing the process. This means that the mortgage companies will be held accountable during the process.

If the mortgage company is not acting in good faith, the bankruptcy court could stop the bank from foreclosing.

If you are facing foreclosure and want to increase your chance of keeping your home, trust the proven method to increase your success. Please call us to make an appointment.

Read about more options if you’re behind on your mortgage.