Mortgage Defaults Increase Despite News of Economic Recovery
A growing number of Americans aren't going to be home for the holidays this year - and it's not because they're traveling.
Despite news that the economy is under recovery, foreclosures are again on the rise as a growing number of borrowers with good credit and fixed-rate loans default on their mortgages. It's just the opposite of what triggered the recession - when borrowers with bad credit began defaulting on subprime mortgages with adjustable rates.
So what's going on? Homeowners are simply running out of money. Chalk it up to too much financial stress for too long. Some folks were laid off months ago and are still out of work - and out of cash - today. Others are growing weary of bearing the burden of debt. Economic recovery might look good on paper, but families across the country are still suffering from the recession. To make matters worse, the holidays are fast approaching - and that means more spending.
But fortunately there's a way to save your house, whether you've missed your first mortgage payment or the bank is already threatening to foreclose.
No, you don't need a holiday miracle - just a bankruptcy plan.
When you file for Chapter 13 bankruptcy, a legal action called the automatic stay stops foreclosure dead in its tracks, protecting your home. Meanwhile, you'll be able to come up with a payment plan that works for your individual situation so you can realistically lower that debt burden, in turn reducing future payments to creditors and lenders. Not only will you free up more money for the mortgage, but you'll have more flexibility to pay the other bills (not to mention to shop for Christmas presents).
If you're living paycheck to paycheck and routinely missing payments, it's only a matter of time before your bank calls you on it. Why not beat them to the punch by getting a handle on your finances now? Give us a call or click at DebtStoppers and sign up for a free one-on-one debt analysis with one of our Chicago bankruptcy lawyers. Give yourself the ultimate gift this year - financial freedom.