Best Bankruptcy Lawyers in Abington, PA

Foreclosure is when a homeowner can no longer make their mortgage payments, and the lender repossesses the house. Luckily, one late mortgage payment will not trigger foreclosure. You typically need to completely miss between two and four consecutive installments before the lender starts the process. Mortgages backed by federal Fannie Mae and Freddie Mac programs have 60 days of guaranteed protection against foreclosure. This means that if you are struggling to make payments on your mortgage, you have time to weigh your options, seek legal advice, and find the best solution to the issue. In some instances, going through with foreclosure may be the only option. However, most of the time, alternatives for a loan default will allow you to keep your home or sell it without harming your credit report. Here are five of the most common options that you have when facing foreclosure. 1. Bankruptcy Filing for bankruptcy can actually be a way to keep your home when faced with foreclosure. Most people have two options: Chapter 7 and Chapter 13 bankruptcy. Chapter 13 bankruptcy requires you to make a repayment plan for your debts. If you are earning income but not enough to cover your current mortgage payments, this option may allow you to catch up on missed payments using a renegotiated payment plan. During Chapter 7 bankruptcy proceedings, a trustee sells your assets and uses the proceeds to pay lenders.