Foreclosure numbers decrease in Massachusetts
Homeowners should be aware that there are ways to delay foreclosure and remain in their homes, depending on their situation.
May 18, 2013
Foreclosure numbers decrease in MassachusettsArticle provided by Victor A. Denaro
Visit us at http://www.victoradenaroassociates.com
Unfortunately, many families in Massachusetts and throughout the United States have had to face the possibility of losing their homes to foreclosure. However, according to a report in the MetroWest Daily News, the amount of foreclosure petitions filed has been on a steady decline in recent months.
Data released by The Warren Group, a company that provides real estate financial information for the New England area, noted that the housing market has improved a great deal, and predicts that since the economy appears to be gaining momentum, foreclosure activity will continue to decline. Still, if you ask some Massachusetts residents who are in dire need of financial assistance in order to avoid having their homes foreclosed upon, they might see things a bit differently.
Delaying or stopping a foreclosure
A large number of families fall behind on their mortgages for one reason or another. In the current economy, there may be a few mortgage lenders who are willing to work with homeowners to keep them in their home; however, most lenders are not so accommodating, and do not waste any time before starting the foreclosure process.
Homeowners should be aware that they still could delay foreclosure even if a sale of their homes has already been scheduled by filing for bankruptcy protection under either Chapter 13 or Chapter 7. After filing, the court issues an "automatic stay." This stay gives the mortgage lender notice that it must cease all collection attempts; so if a sale of the home has been scheduled, then the lender must postpone it until the bankruptcy is finalized.
How a Chapter 13 or Chapter 7 can help
There are a number of ways filing for bankruptcy protection can help an individual work through his or her financial issues with respect to the mortgage payments. The two types of bankruptcies mentioned above help in different ways. For instance:
-A Chapter 13 filing will permit a homeowner to come up with a repayment plan to pay off all mortgage payments that are in arrears.
-A Chapter 7 will actually eliminate various unsecured debts, such as medical bills and credit card debt, to place homeowners in a better position to pay off the mortgage in a timely fashion.
It should be noted, however, that those who elect to file for Chapter 13 protection should have enough income to be able to pay the debts owed under the plan and continue making current mortgage payments in order to avoid foreclosure.
Regardless of the type of bankruptcy selected, the fact remains that time is of the essence in these types of cases. That said, it is strongly recommended that individuals who are facing foreclosure seek the assistance of a bankruptcy lawyer who can advise them according to the specifics of their situation.