Although there are more mortgages in the Sunshine State that are delinquent overall, 11.7 percent of these loans are “seriously delinquent,” compared to 11.8 percent in New Jersey. New York is third with 9.1 percent. All three states are judicial states, meaning that a lender must go through the courts before it can foreclose on a mortgage, so there is a mortgage foreclosure backlog. Observers also stated that Superstorm Sandy might have had some effect.
Saving your home with bankruptcy
A past-due mortgage can be one of the most stressful items in life. The best thing that bankruptcy can do, especially Chapter 13 Bankruptcy, is give you time to catch up on a delinquent home loan account.
Working with the bankruptcy trustee and your creditors, you can devise a repayment plan for either three or five years. You have the first opportunity to draft a plan. If the creditors do not object and the trustee approves, the plan automatically goes into effect.
If you do not plan to keep your home, bankruptcy can help. When you file your petition, an automatic stay generally applies to all creditors in the case. They can take no adverse action against you without specific, prior permission from the bankruptcy judge.
Contact us to receive your financial fresh start today.