The month of March saw a new record for foreclosures in the Phoenix metro area. There were 5,556 foreclosures, a 30% increase over February. I have seen many homeowners continuing to try and save their home through the modification process. While I have seen more success in home owners actually obtaining moficiations in the last few months, many are becoming discouraged with the process and simply walking away.
Many are surprised to learn that filing a Chapter 13 bankruptcy may permit you to stay in your home, even if you haven’t made a house payment in months. The Chapter 13 bankruptcy lasts three to five years. During that time home owners who are behind on their payments will be permitted to catch up on missed house payments while under the protection of the Bankruptcy Court. Further, if you have more than one mortgage or a home equity line of credit on your home, a Chapter 13 bankruptcy may permit you to remove that second and discharge it through your bankruptcy through a process called “lien stripping.” If the value of your home is less than what you owe on your first mortgage, in a Chapter 13 bankruptcy we can strip off the second (or third, or fourth) mortgage and discharge it through your bankruptcy case. This is an attractive option for home owners who are upside down in their homes.
If you would like to discuss your case with an attorney, JacksonWhite offers a free bankruptcy consultation. You can reach an Arizona bankruptcy attorney at (480) 464-1111.