So You’re Behind on the Mortgage…

There seems to be countless Web sites, pamphlets and talking heads on television talking about foreclosure. But there is not much information about how to stop the process. Once the foreclosure judgment is entered, most banks want it all or nothing. I talk to countless people able to pay the majority of arrears and their mortgage company will not accept partial payment.

It’s very simple – if you can afford your house, a Chapter 13 can help you. A Chapter 13 bankruptcy will not modify or change your monthly mortgage payment. But, you can pay the mortgage arrears over a 3-5 year repayment plan. You will start paying the regular mortgage payment and another to the bankruptcy court to get current.

So you fall behind on your mortgage, file a Chapter 13 repayment plan and then there is a loss of income. Sometimes it seems easier to bury your head in the sand and ignore the problem. But this is why you hire Geraci Law! You hire Peter Francis Geraci and Geraci Law Attorneys because we are here to help you. Almost every problem has a solution.

A similar situation happened to an Illinois couple. The wife lost her job during the Chapter 13 plan causing a loss of household income. Regular monthly mortgage payments fell behind and the couple was facing a motion to modify the stay (meaning the house is taken out of bankruptcy protection). The wife returned to work but could not pay the full balance to vacate the motion. Instead of the mortgage company’s motion being granted, Geraci Law Attorney Ashley Chike was able to work out a six month payment plan for the arrears. She was able to keep the house in the bankruptcy and prevent a foreclosure.

Author: Elizabeth Doren Paralegal at Geraci Law L.L.C.

I am a paralegal at Geraci Law L.L.C. (the greatest consumer bankruptcy law firm that ever was or will be!) I talk to thousands of people who are struggling financially. They call because they know Peter Francis Geraci and Geraci Law staff help people through very difficult times. I write about the things I read in the news, hear from clients and general information about debt and bankruptcy I find interesting.