Foreclosure Filings are on the Rise
In 2023, 357,062 US properties were filed for foreclosure. That is 10% more than 2022 and a whopping 136% more than 2021. This reflects a correction from the volatility of the past few years, however, it might still sound alarming to the average American. Although this means more predictability for the housing market, a pro for future homeowners and investors, a foreclosure still can be devastating to the individual who owns the home. So what do you do when you get the notice that your home is being foreclosed on? The answer very well may be bankruptcy.
What is Foreclosure?
A foreclosure is the legal process that occurs when a homeowner defaults on their mortgage. In this process, the lender seeks to take possession of the property. Understanding the foreclosure process and the actions that you can take are vital in determining how best to move forward.
How Can Bankruptcy Help?
Bankruptcy can feel daunting to the average person, however, it can be a great way to save your home. If you file a chapter 13 bankruptcy, you can stop the foreclosure sale in its tracks. Bankruptcy gives you the opportunity to take the amount you are behind on the house and pay it off over the next 3 to 5 years. This leaves you caught up on your payments and no longer at risk of losing your home.
Even if saving your home isn’t the right move for you, a chapter 7 bankruptcy allows you to surrender your home, giving you a chance to move out. In this scenario, bankruptcy relieves you of the burden of paying off any personal liability for the mortgage debt on a house you no longer live in.
Let Bankruptcy Help You Avoid Foreclosure
Let bankruptcy leave you in charge of what happens to your home. Call The Bankruptcy Law Offices of Dax J Miller today to see how bankruptcy can help you.