With increasing unsecured debt, including medical bills, student loans, and credit cards, many Americans families, especially in Ohio, have fallen behind on their mortgage payments. Homeowners are simply unable to keep up with their monthly bills and budget, while still staying current on their mortgage loan. This leads to late fees and penalties on the mortgage payment, and soon enough, a foreclosure lawsuit will be filed by the lender. Fortunately, homeowners can stop the foreclosure action and save their homes any time up until the sheriff’s sale date, through a Chapter 13 bankruptcy. The Chapter 13 is a form of bankruptcy that allows the homeowner to cure the arrears (missed payments) on the mortgage loan over the course of 3-5 years, paying no interest or late fees on the arrears. At the completion of the Chapter 13, the mortgage lender(s) will receive a court order from the Bankruptcy Court stating that the mortgage must be deemed current, so the homeowner can resume making the normal monthly mortgage payments.
Another huge benefit of the Chapter 13 along with saving one’s home, is that it allows the debtor to wipe out unsecured debt, including credit cards, medical bills, old utilities, and more. There’s a common misconception amongst the general public that in a Chapter 13, one’s debt has to be paid back in full. In almost every Chapter 13, this idea is completely wrong, as debtors only have to pay a percentage of their unsecured debt, based on their income. Generally speaking, when someone files a Chapter 13 bankruptcy to stop a foreclosure and save their home, the amount of unsecured debt they have to pay back is minimal, sometimes none at all. The purpose of the Chapter 13 in this instance is to stop the foreclosure and save your home, while eliminating as much unsecured debt as possible.
When homeowners get behind on their mortgages, they often get targeted by scams and loan modifications that simply do not work. Mortgage rescue companies and load modification offers specifically target homeowners who are behind on their mortgage payments, especially when a foreclosure has been filed. These loan modifications and mortgage rescue companies usually make promises they cannot keep, leading the homeowner to losing their home, along with their money. If you are behind or about to fall behind on your mortgage, or have a second or third mortgage you cannot pay, call an experienced bankruptcy attorney immediately. A Chapter 13 bankruptcy is the legal, guaranteed method to stop foreclosure, as it is backed by the Federal Bankruptcy laws. The lawyers at Harold Jarnicki and Associates have specialized in stopping foreclosures in Ohio and saving people’s homes throughout the Lebanon, Mason, Middletown, Wilmington, Hillsboro, and surrounding areas for over 40 years. Call 513-932-5792 today for a free consultation with a bankruptcy expert to find out how you can save your home and eliminate your debt.