Many homeowners are facing foreclosure or struggling to make their mortgage payments in today’s economy. About 50% of homeowners facing foreclosure do nothing and let the home go to foreclosure. What do the other 50% do? There are many solutions available to homeowners who are struggling to make their mortgage payments (other than losing sleep at night). How do you know what is the best solution for you? You need to speak with an expert who is aware of all these options so that you can get the advice that is best for your situation. Not all solutions will work for everyone. A loan modification is an option for the homeowner who wants to keep their home. A loan modification is when the bank agrees to change the terms of the existing loan so that the homeowner can stay in the home. A homeowner can do a loan modification on their own. Just keep in mind that you signed the documents on the loan you have now and it isn’t working for you, so you should consider having an expert handle the negotiation with the bank. The experts know the banks terminology and how to use that information to your advantage. A forensic loan audit is when you have an expert review your existing loan documents to look for violations. The expert knows exactly what to look for to negotiate with the bank on your behalf. This is different from a loan modification because the expert is looking for violations, not just negotiating to change the existing terms. Mortgage brokers will talk to you about a refinance. If you can qualify for a refinance, this may be an option for you. Just make sure you get a loan that is a long term solution not a band-aid. A short payoff refinance requires approval from your current lender, with them agreeing to take less than what you currently owe.

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When you are struggling to make your credit card payments, mortgage, car payment, or other outstanding bills, you may find yourself deep in debt. At a certain point it may feel that you are so far behind that you are never going to catch up. Fortunately, United States law offers provisions to debtors who are under severe financial stress to help them secure a fresh start. While bankruptcy has its downsides, it can be a much better alternative to being burdened with a large pile of debt for the rest of your life. Individuals who are looking to file for bankruptcy have multiple bankruptcy options available, each of which is ideal for different people in different situations. One bankruptcy option that is available to an individual with a high amount of personal debt is Chapter 13 Bankruptcy. Under Chapter 13, an individual clears his or her debts by drafting a plan to save money and pay back the debts over 3 to 5 years. This gives the debtor a large grace period to reevaluate finances and gradually work towards becoming debt free. For some people, this form of bankruptcy is a much preferred method over Chapter 7, which requires a debtor to liquidate, or sell, much of his or her property to pay back debts. With Chapter 13, you will liquidate little to no property and will pay back debts using income that you earn over time. Eligibility: Debt Limits In order to file for Chapter 13, you must meet certain strict debt limits. Anyone with debts over the amounts listed below will not be eligible for Chapter 13 and must file for Chapter 7 instead. The restrictions on debt are divided into secured and unsecured debt as follows: Must have less than $336,900 in unsecured debts Must have less than $1,010,650 in secured debts Must be an individual debtor. No partnerships or corporations are eligible for Chapter 13.

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