Two Foreclosure Solutions That Can Save Your Life

Facing foreclosure, there will always be that one moment in your life when you will need to think of a way to keep the businesses or properties that you worked so hard to attain. However, some people quickly give up, especially when feeling like they have already reached a dead end. Before even thinking about raising the white flag, here are two common foreclosure solutions that you might want to give a shot.

Payment Plan

The payment plan is also known as forbearance, an agreement between the creditor and the borrower to hold up a foreclosure. At the end of your forbearance period, you will be expected to begin making payments of your regular bills and also all those bills which are already past due.

During the forbearance period, your home loan payments will be reduced or suspended. If you are suffering from a temporary financial hardship, this can be very helpful. Because it is not a permanent fix, this solution is sometimes not really the right choice in these situations, since all of the original debt remains.

Although it’s just a temporary solution, it will give you enough time to save money, come up with new employment, or recover from a personal medical event or emergency.

Bankruptcy

Declaring bankruptcy is not an embarrassment, especially when this is your last resort. Whether you’re a CEO of a big company or a humble fisherman, you can totally choose and file from the several bankruptcy codes available, like Chapter 7 or Chapter 13, which are the codes most often used.

One of the benefits is you will be able to retain ownership of property, like your home, which is protected by the bankruptcy laws. However, before ever declaring bankruptcy, always consult your lawyer so they can help you about which one of the codes to choose to file under and, if fortunate, win your case.

Takeaway

There are a lot of foreclosure solutions that you can read about from different articles on the Internet. Always keep in mind that having debts is not embarrassing, rather, not paying your debts is.