Homeownership has been the American dream for generations. At one time, people could realistically pay off their mortgage in 10 to 15 years and live the rest of their lives without a mortgage. Few people are able to do that today. The rising costs of real estate, coupled with financial uncertainty, has led lenders to offer more flexible terms. Some mortgage companies even offer 40-year terms on their first mortgage loans. Still, far too many homeowners fall behind on their payments and face Foreclosure in Topeka KS.
Numerous situations occur that put responsible homeowners in danger of losing their property. Some fall behind on payments due to job loss while others can’t afford to pay their mortgage after a divorce, and another group of people has trouble with their bills after an extended illness. The good news is, the mortgage companies have an interest in helping homeowners keep their houses. When they have to go through with a Foreclosure in Topeka KS, banks sometimes lose money. It’s more cost-effective for lenders to assist borrowers if they can.
Homeowners who know they aren’t going to be able to make their next payment on time should contact their mortgage company. Lenders may start the foreclosure process after just a couple of missed monthly payments, but they might allow a homeowner to apply for to modify the terms of their loan right away. Waiting could make it more difficult to get a loan modification, but a homeowner who has a stable income may be able to keep their house even if the mortgage company follows through with its threats to file for foreclosure.
The most effective way to stop a foreclosure is to file for bankruptcy protection. Chapter 13 bankruptcy may allow a homeowner to keep their house by paying the past-due balance over time. There are a few steps required before a homeowner can file the paperwork with the court and stop the collection action, so it’s essential for someone in this unfortunate situation to talk to an attorney like Business Name as soon as they know there is a serious problem.
