Don’t wait until last minute to deal with mortgage arrears

When you get behind in your mortgage, it is smart to start talking to your lender right away. Usually they will make adjustments to accommodate your situation, saving you a lot of money.

If you get past that point and your lender is looking to foreclose, the best thing to do may be a Chapter 13 bankruptcy. It immediately stops all foreclosure proceedings and brings in the court.

Usually a Chapter 13 settlement will allow you plenty of time to pay arrears in your mortgage (without additional interest being tagged on) and, at the same time, you may save a lot of money on other back debts, like credit card debt.

But do not wait until the last minute before talking to a qualified bankruptcy attorney. I talked to someone the other day who waited until one day before the auction of his property was to take place. One day!

Fortunately, he found a lawyer who could turn the paperwork around in less than a day, but he was taking an awful risk of losing his house.

For more information on bankruptcy, click here.

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