Also, mortgages on investment properties may be eligible for modification, but unlike personal residences, they do not fall under the protection of most mortgage loan modification programs, as the initiative is designed for residential properties only.
One alternative to seeking a mortgage loan modification would be filing forChapter 13 bankruptcy, which has many benefits including the ability to save both your residential home as well as investment properties. Filing Chapter 11 bankruptcy for homeowners may be an option as well. Regardless of the chapter, the foreclosure process stops once the bankruptcy case has been filed. Hopefully, with the assistance of a qualified bankruptcy attorney, you will be able to protect your assets, your rights, and most importantly, your house.
Whether you file Chapter 13 bankruptcy in Dallas or even Chapter 11 bankruptcy in Plano, homeowners are given from 3 to 5 years to “catch up” payments they may have missed prior to the bankruptcy filing. There is also a possibility that you can strip off or eliminate a wholly unsecured second mortgage on the residential property. For investment properties, bankruptcy may allow the homeowner to modify the mortgage payment and manage the pre-filing arrears altogether.
Perhaps the biggest benefit of Chapter 13 bankruptcy in Texas is that you may be able to prioritize making regular monthly payments to the mortgage lender, as well as catching up the arrearages, while at the same time discharging certain unsecured debts owed to non-mortgage creditors such as credit cards and medical bills. This typically frees up and improves the homeowner’s budget compared to where it was prior to the bankruptcy filing.
For a better assessment of your current situation and to discuss which options are available to you, contact our experienced bankruptcy attorneys today.