Are you in a situation where the lender has declared foreclosure and you don’t know what the next step is for you? Well, there are workout options such as an alternative repayment plan, loan modification, or a partial claim to try out for. But such things are ok only if you wish to preserve the home.

What if you wish to move out? Well, you’d probably negotiate for a short sale if you’re upside down on the mortgage. Or perhaps you may try to negotiate for a deed-in-lieu because this is one option where you need not pay the deficiency as the law says.

But how about keeping the home and at the same time paying down the mortgage? This is quite possible if you’re filing bankruptcy chapter 13 which allows you to follow a repayment plan (approved by the trustee and your lender) and pay off a part or whole of the mortgage within a period of 3-5 years so that the rest can be paid off using a separate repayment plan or a refinance as allowed by the lender.

Interested to know more? Check out why chapter 13 is often a far better option .

[tags]chapter 13 or foreclosure, chapter 13, avoid foreclosure[/tags]

This entry was posted on Wednesday, April 9th, 2008 at 6:15 am and is filed under Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.