Understanding Foreclosure Options

If you are facing foreclosure in Los Angeles County, it may seem as though your options are limited at best. If you want to prevent foreclosure, you have to take a look at your particular circumstances objectively. There are many possible solutions to the foreclosure problem, including direct mortgage negations, filing for Chapter 13 bankruptcy, or other methods such as a short sale or deed in lieu. Each of these has its own benefits and risks, and you should speak with a qualified legal professional who can help you understand how each choice may affect your financial situation.

In the current economic market, many lenders want to avoid adding another foreclosure to their financial statements. Because of this, if you have a steady income, you may be able to renegotiate your mortgage, either through a non-profit organization, or directly with the lender yourself. You may be able to negotiate a lower interest rate, lower the principle that you owe, or get any past-due payments adjusted to the end of the mortgage, or spread out over several months, so that you do not have to repay a large lump sum. These types of options should always be your first choice if you have a solid income and are otherwise in good financial shape.

If you have other financial concerns besides your potential foreclosure, you may want to consider filing for Chapter 13 bankruptcy. This is because with a Chapter 13 bankruptcy, you can get rid of many other types of debt, and free up money to pay your mortgage. Depending upon the housing market where you live in Los Angeles County, amongst other factors, you may be able to have your mortgage adjusted by the bankruptcy judge, even if the bank was unwilling to work with you.

If you are in a situation where you cannot make any payments at all - you've lost your job, are unable to find work, or have simply fallen too far behind - there are still options available that will potentially allow you to avoid having a foreclosure on your credit report. A short sale or deed in lieu may allow you to get out of your mortgage agreement and preserve your financial health as much as possible.

Options for foreclosure solutions are numerous and can be overwhelming or confusing. Getting the advice of a solid legal professional can help you to better understand how your choices will impact your financial future. If you are considering filing for Chapter 13 bankruptcy, and aren't certain what to do about your potential foreclosure, please contact us today. We have legal professionals who specialize in Los Angeles County Bankruptcy Law, and we understand how to handle foreclosure cases in a multitude of different situations. Let our team of legal experts give you the advice you need today - contact us and schedule a free initial case evaluation, so that you can understand your foreclosure options and how best to move forward with your financial independence.