For anyone who is going through financial crisis and fear the loss of your own home, know you aren’t alone. Just like countless other people, you could have lost a job or suffered a pay cut, your adjustable rate mortgage could quite possibly have reset and you also can’t afford the payment, or falling property values mean you can’t refinance. You could think that bankruptcy, foreclosure and loss of your dwelling is inevitable. A single answer doesn’t cover every scenario, and you will have possibilities that include keeping your property while you work through financial challenges. Explore all options before concluding that all will be lost in foreclosure or bankruptcy.

Your mortgage payment, which often can include amounts for property insurance and taxes, is perhaps the largest single bill you spend on a monthly basis. The check covers your housing needs, also it represents an investment for many homeowners – you’ll find financial and emotional aspects at the same time. If you fail to make your home loan repayments, you must have a hard review of your situation, financially and otherwise, and choose on an alternative that’s good for you. Consulting a bankruptcy or real estate lawyer in your area can help with your decision-making process.

Consider All Options

Here is a list of options and factors it is important to consider:

What is the magnitude of your financial crisis – is there a prominent element, like a job loss, or is paying just one debt at the root of the financial problems, like medical bills or your mortgage?

Is your financial crisis temporary, such as a short period of unemployment or underemployment, or is there an unchangeable change, such as a disability that can affect your earning power on a long-term basis?

How much equity is in your house?

How does the value of your house compare to the debt it secures – do you owe more than the house is worth?

How does your current home meet your housing needs – is it the right size, what are the ongoing maintenance and ownership costs, and does the location meet your lifestyle, family, and employment needs?

Is home ownership the best way to meet your housing needs? Do you have the abilities and resources needed to own the place in which you currently live?

If you want to keep your home, have all options for loan modification been explored?

If you don’t want to keep your home, have you tried to sell it, either through conventional means or through a short sale?

Is your lender willing to pursue foreclosure alternatives, such as accepting a deed in lieu of foreclosure?

Have foreclosure proceedings started, and if so, how far along is the process?

Would you qualify Chapter 7 or Chapter 13 bankruptcy relief?

Do you have other debts, and could those debts be discharged or restructured through bankruptcy?

Making Home Affordable Relief

Prior to reaching the crucial stage of bankruptcy or foreclosure, find out if refinancing or changing your mortgage is available. In response to common economic crises suffered by lots of homeowners, the Making Home Affordable program offers relief. Financial stability.gov is a government Web pages that provides information about eligibility along with the process to get help. The Web page includes an interactive tool for helping determine whether you’re qualified to apply for relief.

Making Home Affordable has two sorts of relief:

1.Home Affordable Refinancing for homeowners who have loans owned by Fannie Mae or Freddie Mac. This program targets those who haven’t got the ability to refinance their mortgages at today’s significantly low rates because of plummeting home values, leaving them “underwater” with a mortgage balance that’s over the home value

2.Home Affordable Modification for homeowners who can’t afford their mortgage payments as a result of loss or decrease in income, increased mortgage rates or who don’t get a Home Affordable Refinancing. This program aims to modify your mortgage terms and also to bring the payment within a reasonable range

Start by contacting your lender or loan service, but be patient and persistent. These programs are new, and lenders must work to quickly implement the programs and also the demand is high. Even if you don’t qualify for these programs, work with your lender to get yourself a solution. Avoiding foreclosure will likely be best for all parties.

For help with a  chapter 7 bankruptcy, select a Savannah Georgia bankruptcy attorney. A bankruptcy attorney Savannah GA could give you the help you need.