The nation's biggest mortgage companies reached a $25 billion settlement in February with state officials regarding their wrongful practices and disregard of homeowner rights. Unfortunately for homeowners, this settlement cleared the way for banks to address their backlog of foreclosures - particularly foreclosures the banks had repeatedly postponed or delayed initiating.
Lenders initiated foreclosure on 12% of the loans behind in payment in June — the highest level since the first half of 2009. Analysts have been expecting an increase in foreclosures - particularly foreclosures on homes that have been in default for quite some time. RealtyTrac estimates 700,000 homes will be foreclosed by lenders this year.
Fortunately, the bankruptcy process allows individuals and families more time to try to save their homes by automatically staying a foreclosure upon the filing of most bankruptcies. While the foreclosure process is stayed, you can continue to work to obtain a loan modification through your lender yourself or with the assistance of an approved counselor. If addition, you can also propose a plan to the court to reinstate your mortgage by paying the past due amounts over time.
If you are in danger of foreclosure, contact us today online or call us at 650.259.9200 to set up a free bankruptcy consultation. We can explain how you can use the bankruptcy process to wipe out unsecured debts, freeing up funds so you can afford your mortgage and car payments. We offer flexible payment plans and competitive rates to make our services very affordable to you. -honakerlegal
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Law Office of Jason Honaker