There are many reasons people get behind on their bills. They may have lost a job or faced a pay-cut. One of the bills that can get behind is the mortgage. Unfortunately, the mortgage company can foreclose on the home. The homeowner is usually several months behind before a foreclosure is filed. In the meantime, consumers can try and remedy the situation. Fortunately, there are several ways to avoid losing the home. First, try to modify the existing loan.

There are government programs to facilitate modifications. Many consumers are able to get help through the HAMP program. HAMP stands for Home Affordable Modification Program. The goal of HAMP is to reduce the mortgage rate and lower the payments. A lawyer can be helpful for anyone facing Foreclosure in Lawrence KS. Visit a lawyer’s website and Click here to make an appointment. Many attorneys are able to negotiate with the mortgage company. They may be able to work out a forbearance plan. This plan allows the consumer to pay a reduced mortgage temporarily. On the other hand, the mortgage company may suspend payments for a period. Mortgage companies agree to a forbearance if there is a serious hardship.

Bankruptcy is another way to stop foreclosure proceedings. When a bankruptcy is filed, the judge issues a temporary stay. The stay means all collection proceedings must stop. Further, bankruptcy is a good idea if the consumer is behind on other bills. Chapter 13 is the best bankruptcy for people facing Foreclosure in Lawrence KS. Basically, debts are paid through a monthly plan. The consumer repays their debts over a three-to-five-year period.

On the downside, filers pay a large part of their disposable income to the bankruptcy. They will have to get used to living on less. Sometimes, the lawyer may get the mortgage crammed down. This comes into play when more money is owed than the property is worth. At this point, the homeowner must do two things to keep the house. They must make all bankruptcy and monthly mortgage payments. Experts advise discussing your situation with a lawyer. They should be able to tell if a modification is possible. On the other hand, they may recommend bankruptcy.