With the current cost of living continuing to rise, so is the number of foreclosures nationwide. While the cost of gasoline, eggs and milk have slowly decreased, we all feel the pinch of other consumer goods remaining high, putting many at risk of falling behind on mortgage payments. Experts suggest this increase is a “normalization” process from loan forbearances and government assistance during the pandemic coming to an end. But to those served with a foreclosure notice, this feels anything but “normal”.
What assistance is available if loan forbearance and government assistance is no longer available? Individual lenders may still offer some assistance; however, at this point, such assistance may be limited in nature.
A final option to consider is bankruptcy. First, all attempts to collect on a debt are prohibited during a bankruptcy. This means the foreclosure will stop upon the filing of the bankruptcy. Additionally, a repayment plan will be created, which will allow up to five years to pay the amount that you’re behind on your mortgage. Although you will still be required to make your regularly scheduled mortgage payments going forward, the extended time you are allowed to pay the amount you are behind will provide much needed breathing room.
If remaining in your home is the most important consideration, you owe it to yourself to explore every option available to you.