Options when you are behind on your mortgage
Many people got behind on their mortgage because of Covid. They lost their job or had a reduction in pay. But life goes on, and there are bills to pay. Sometimes the money runs out. But why you are behind on your mortgage is less important than what you can do about it. There are many reasons why you can’t afford to lose your house right now. The value of the housing market is way up. That means that most people have a ton of equity in their property. The downside of that is that it makes your property more valuable to your lender than if there was no equity in the property. So I will list the options that you may have if the lender on your house is coming after you or might come after you soon. The sooner you think about these options, the better prepared you will be when the action starts up from your lender.
The first option is to sell your house. Because there is so much equity in property right now, you may be able to make a lot of money before the mortgage lender begins the foreclosure process. There are problems with selling your house right now. The first, and most common question I get is where am I going to go? Housing is very expensive right now, and unless you are prepared to leave the state, this is probably not a great option. Also, if you have children in school, you probably don’t want to uproot them, and bring them to another school. These are very difficult decisions to make. But it is an option.
The second option is to negotiate with your mortgage lender to try to put the amounts you are behind to the back end of the loan. Many mortgage lenders are willing to do this. However, you may have to pay for the insurance and taxes so they don’t force place insurance. any time you get a call from your mortgage lender, make sure to confirm the conversation in writing. Many loans get sold, and the new lender may have no idea that you have an agreement with your old lender. The only way to prove it is by having emails between yourself and the lender. Many lenders may negotiate with you because of Covid issues you are having with your employment. Always keep in touch with your lender about these issues. Don’t assume your mortgage lender will do anything to act in your best interest. You have to advocate for yourself. If it’s not in writing, it didn’t happen. So get EVERYTHING in writing.
The final option is filing for Chapter 13 bankruptcy in Miami or Ft. Lauderdale. Filing for Chapter 13 bankruptcy in Miami or Ft. Lauderdale should always be a card you have in your back pocket if the other options don’t work out. You should meet with a qualified and experienced bankruptcy attorney in Miami or Ft. Lauderdale to see what your Chapter 13 options are. The filing of a Chapter 13 bankruptcy is a process that should be simple for you. The two main components of Chapter 13 bankruptcy in Miami or Ft. Lauderdale is that you supply all of the documentation the trustee requires and that you have enough money to pay the trustee every month to fund your Chapter 13 bankruptcy repayment plan. The paperwork includes, but is not limited to tax returns, bank statements, drivers license, social security card, vehicle registration. There may be more document information requested by the Chapter 13 trustee in Miami or Ft. Lauderdale. Your first Chapter 13 payment is due 30 days after the case is filed. It goes to a P.O. Box in Memphis, TN. They will only take cashier’s checks or money orders. You may be required to have the trustee payments come out of your paycheck, but if your employment would be at risk or you work for a small company, the wage deduction order can be waived. Even if your payments are coming out of your paychecks after a Chapter 13 bankruptcy is filed in Miami or Ft. Lauderdale, your first payment must be made by you because the order takes a couple of weeks to receive from the court, and your employer may take a couple of weeks to start deducting the money from your paycheck. There will be one hearing that you must attend. Right now, during covid, this hearing will be by phone. It’s a simple hearing before the trustee or her lawyers. They are not trying to trick you. Nothing bad can come out of this hearing. Your experienced bankruptcy attorney in Miami or Ft. Lauderdale should prepare you before the hearing, and tell you the questions that will be asked. They are generally the same questions for everyone. The actual purpose for that hearing, called a Section 341 meeting, is to set deadlines for creditors or the trustee to file objections with the court. These objections are not a big deal. In fact, the trustee in Miami files an objection in every single case. Any deficiencies for the Chapter 13 bankruptcy in Miami or Ft. Lauderdale will be cured quickly. The trustee may ask for documents to cure these deficiencies. They may just want an explanation of the deficiency. As long as your Chapter 13 bankruptcy attorney in Miami or Ft. Lauderdale knows what they are doing, you should be done with court. It may take up to six months to get confirmed, and sometimes longer, but for you, the only thing you need to worry about is to make sure the trustee is getting the payments pursuant to the Chapter 13 bankruptcy repayment plan. After 3-5 years, your Chapter 13 bankruptcy plan in Miami or Ft. Lauderdale will be completed, and you will be current on your mortgage. A motion will be filed with the bankruptcy court to deem your mortgage current, and you can start to make direct payments to your mortgage lender as if you were never in Chapter 13 bankruptcy.
The key to all of these options is to make sure you do them immediately so you can figure out what your best option is. It can’t hurt to see a bankruptcy attorney in Miami or Ft. Lauderdale even if it is premature. At least you can learn what you need to know if the time comes where you do need to file for Chapter 13 bankruptcy in Miami or Ft. Lauderdale.