Purchasing a home is a rewarding experience. People buy houses for a number of reasons, for instance, to raise a family or as an investment in their financial future. A few people buy houses simply so they will have a stable place to call home. The mortgage process requires buyers to have a steady source of income and a strong payment history. Most buyers are financially ready to own a house at the time of closing. However, over time, financial problems can and do happen to many people that cause them to get behind on their payments and face foreclosure.
There are ways to stop foreclosures in Jonesboro, GA but home owners have to act quickly. The first step is to consult with an attorney who focuses on chapter 13 bankruptcy. When a home owner who is facing foreclosure files for bankruptcy protection, the mortgage company must work with the courts to make a reasonable payment plan for them. It’s important for the owner to have enough income to make the mortgage payment. This form of bankruptcy does not eliminate the debt, it merely reorganizes the amount due for all of the debts in the household so they are more affordable.
Although filing for bankruptcy will have a negative effect on the home owner’s credit and will limit their ability to get new accounts, this can actually have a positive effect on the household. In addition to helping them stop foreclosure in Jonesboro, GA, bankruptcy can also help a family learn how to budget their money so they don’t overspend. The court will likely require the home owner to spend a large portion of their salary on their debts. They will not have much discretionary funds while they are participating in the payment plan.
To learn more about the options available to home owners who are in financial trouble, visit Chriscarouthers.com. By getting in touch with an attorney prior to a foreclosure action being filed by the lender, home owners have more options for saving their house. Because a home has such a high emotional value to many families, exploring the bankruptcy option can have a huge impact on the stability of the family.
Like us on Facebook.