Obtaining foreclosure protection is not an easy or time-consuming process. From the day you receive a notice of foreclosure in Missouri, you generally have about 21 days to make a decision on your home. While you could spend more time in Illinois, nothing is guaranteed when it comes to foreclosure. If you’ve done your research, you’ve probably come up with two possible solutions: Chapter 13 bankruptcy in Missouri and Illinois, or loan modification. So which one is better?
Loan modification has changed in the last year, and not for the better. A year or two ago, you may have recommended a loan modification for those who are in a temporary situation like a job change or a small medical emergency that had their budget tight for the short term. But with the latest housing crisis and loan modification lousy performance, I’m not sure I’d recommend it at all, for any situation. Even America’s largest lender has only approved 4% of applications, leaving the other 96% to fend for themselves.
Generally, you must first fall behind on your mortgage to be eligible for the program. This has led to people deliberately falling behind on their mortgage to qualify. Since the waiting line for modification applications is so long, they are often so behind when people are told that they cannot modify the mortgage that it is impossible to catch up.
On the other hand, Chapter 13 bankruptcy in Missouri and Illinois provides homeowners with a permanent solution to debt. Despite what it may seem, many life events are not temporary and are actually the fastest way to find yourself with overwhelming amounts of debt. Even what seems like a small change in your budget could land you in the bottomless pit of debt. You may only be able to get out of debt if you find a solution that permanently manages your debt.
A St Louis or Wentzville Missouri bankruptcy attorney can help you reorganize your debt, save your home, and recover. Bankruptcy is a very powerful federal law that forces your creditors to take less money over a longer period of time, and prevents them from continuing to harass your family over the phone and threaten to take away your home and car.
Not sure if bankruptcy is the best solution for you? Get free information like blogs, articles, bankruptcy FAQs, and even free books from great lawyers in your area. You have a better chance of saving your home if you start to consider your options early and often.