It seems fundamentally unfair that good, hardworking people sometimes suffer financial setbacks that put their home ownership in jeopardy. Illness, work slowdowns and other unexpected problems in life can cause you to fall behind on your monthly mortgage installments and other bills. When mounting debt and revenue shortfalls make it seem like you are swimming in quicksand, it’s time to enlist the help of an experienced attorney. At the Agarwal Law Firm, our bankruptcy lawyer helps everyday people in the greater Richmond, VA area, secure mortgage relief with Chapter 7 and Chapter 13 bankruptcy solutions.
Home Mortgage Debt and Mortgage Mediation
The term “home mortgage debt” may sound a little scary, but it merely refers to the balance a homeowner owes a lender. Most people carry some level of mortgage debt and that only becomes problematic if you are unable to make the required monthly installments.
Struggling to pay the mortgage is more than just a business transaction. Home ownership remains part of the American dream, and everyone deserves a roof over their head. That’s why there are a variety of remedies available to people who are enduring tough financial times.
Foreclosing on a property is seldom in the bank’s best interest. In many instances, filing for Virginia bankruptcy may allow for an experienced lawyer file a bankruptcy and allow time to apply for a loan modification. Loan modifications are fact specific and different for each individual. Most allow the back payments to be put towards the back end of the loan and reduce the monthly payments making it more affordable for you to continue with payments.
Options Outside of the Bankruptcy Process:
When borrowers experience temporary financial setbacks such as a medical condition or natural disaster, there may be an opportunity to put the loan payments on hold for a defined period of time. Lenders are often open to this type of negotiation when borrowers have an excellent repayment history and a reasonable path to making up the missed payments at a later date. The forbearance plan would not be part of the bankruptcy but is an option to look into before a bankruptcy filing.
Short Sale Agreement
In the unfortunate scenario that you are unable to pay the loan going forward, a short sale agreement could allow you to sell the property for less than the full amount owed without carrying further debt. Such deals can help people get a fresh start on their financial future without the anchor of excess debt.
Deed in Lieu of Foreclosure
Another option for people with insurmountable home mortgage debt is the transfer the deed to the lender and forgo the foreclosure process. This option can lower the long-term negative impact on your credit score.
When your debt-to-income ratio causes you to fall behind on monthly bills, it’s important to know that you have alternatives. Banks and other lending institutions are driven by profits. Foreclosure proceedings can prove to be a costly last resort in terms of a company’s bottom line.
Chapter 7 and 13 Bankruptcy in Richmond, VA
If you are falling behind in your mortgage payments or struggling to manage overall debt, it’s time to work with a lawyer who brings more than 15 years of experience The Agarwal Law Firm can pull you out of financial quicksand and get you the financial relief you deserve. Call our Richmond law firm and schedule a free consultation today to learn how filing for Chapter 7 or Chapter 13 bankruptcy can help relieve your home mortgage debt today.