The mortgage crisis is lessening, but there are still many people who are about to lose their homes or who are afraid that they will lose their homes to foreclosure. The issues with foreclosure rates are especially significant in big cities like Phoenix, Detroit, Miami, and others where the market is no longer strong.
There is hope for homeowners, though, in terms of mortgage modification. While not everyone is eligible, people who get their mortgages modified are more likely to keep up with their payments and stay out of serious financial trouble such as bankruptcy proceedings. Sometimes they still lose their homes, but that is not as common for them as it is for people who are not able to have their mortgages modified by their banks or other lending institutions.
A program based in Orlando, Florida, is being undertaken in Sarasota and Manatee counties as well. Designed to keep homeowners out of foreclosure, it has enjoyed a 75 percent success rate. It originally was pilot program that was being tried in federal bankruptcy court. For those who have qualified for the program, the end result has been a reduction in the mortgage principle. As a part of the program, homeowners must file for Chapter 13 bankruptcy.
While it strongly affects your credit, it does clear your debts (with some exceptions) and allow you to get a fresh start. There are different options under bankruptcy law, so working with a good Miami bankruptcy lawyer is your best bet. That way, you’ll know and understand all your options so you can make the right financial choice.
Source: The Herald Tribune, “Mortgage modification may remedy foreclosure crisis,” Todd Ruger, Nov. 12, 2011