Many people lost their jobs during the pandemic and got mortgage forbearances to help them. Some were fortunate and got the mortgage forbearance arrears to be put at the balance of their mortgage which can be a loan modification or partial claims mortgage. However, other people in the same situation may not be as fortunate and will have to pay back the mortgage arrears much sooner or the mortgage company will begin foreclosure.
Also, unfortunately, there are unscrupulous mortgage companies where clients are told one thing and the mortgage company does not always keep to their promise.
If you are now working and owe mortgage forbearance arrears, it is URGENT that you contact Taieb Law for a FREE consultation so he can advise you of your rights under the bankruptcy code. Then you must file the chapter 13 petition if you want to save your home.
The chapter 13 will give you several options to deal with the mortgage forbearance arrears.
1. You can do an arrearage cure which will allow you to pay back the money you are behind over the next 60 months and in a lot of cases our clients have discharged all other unsecured debt such as credit cards, personal loans and medical bills.
2. If you cannot afford to pay back the mortgage arrears over the next 60 months, you can try to obtain a loan modification where the mortgage arrears are put on the back of the mortgage or propose a plan to do a partial claims mortgage. Some of our clients have been successful in obtaining loan modifications while others have not been successful. This is why I prefer an arrearage plan since you control your own destiny. Also, I would only recommend a plan with a partial claims mortgage if the the mortgage servicer specifically put something in writing.
3. Other clients have done sales plans, whereby they stop the foreclosure and then sell their home through the bankruptcy. Unlike a chapter 7 where a trustee has control, the client has control of the sale in a chapter 13 and would get an initial $25,150 exemption if there was substantial equity in the home.
These are only a few types of plans to stop foreclosure on your home.
The other overwhelming reason to use chapter 13 if you are behind on your mortgage is that it takes a universal approach and helps you deal with all your creditors, such as credit cards, personal loans and medical bills. Just dealing with your mortgage and not your other creditors is not the answer since eventually, they will all come out of the woodwork. If you do not have a mortgage or are current on your mortgage and just want to get a fresh start and clean the slate, you can do a chapter 7 if you qualify.
Now that things are opening up and the moratoriums are coming to a close, you do not want to delay.
If you are sick, stressed out, or losing sleep over your debt, we can help you save your property and get a fresh start by filing a bankruptcy for you. For more information go to www.bankruptcywithcare.com or call us at (856)235-4994 for your FREE initial consultation.
AGAIN, PLEASE NOTE WE ARE OPEN FOR BUSINESS TO HELP ANYBODY WHO IS IN FINANCIAL DISTRESS AND CAN HELP YOU EITHER IN OFFICE OR VIRTUALLY. PLEASE ALSO NOTE THAT STEVEN N. TAIEB, ESQUIRE HAS BEEN VACINATED.
Steven N. Taieb, Esquire has been a south jersey bankruptcy attorney for 36 years and is board certified in consumer bankruptcy law by the American Board of Certification which is accredited by the American Bar Association.
We are a debt relief agency. We help people file for bankruptcy relief under the bankruptcy Code.