Missing one or two payments won’t lead you into foreclosure, but if you have missed 3 to 6 months of payment, your lender can initiate a foreclosure. Foreclosure is an attempt by your lender to get their money back. It won’t be done without your consent; your lender will notify you before they can go ahead. However, if you cannot successfully negotiate loss mitigation options with your lender, your chances of saving your home become slim. Here is where filing for bankruptcy comes in.

Filing for bankruptcy is an alternative many homeowners use to stop foreclosure on their home. It is a great option, especially for homeowners who have no money to reinstate their loan. It gives you the relief needed to get back on track with your mortgage payment. However, there are various chapters of bankruptcy available for you to consider. Chapter 13 is a widespread solution for many homeowners. It helps you stop foreclosure immediately and still gives you other benefits. The moment you submit your petition to the court, an automatic stay order goes into effect. The order is to make stop all creditor’s collection activities, which includes foreclosure. The foreclosure will be stopped immediately or postponed for at least three months.

Chapter 13 bankruptcy allows you to negotiate a new repayment plan with your lender. Either your loan is due or not, your loan duration will be extended by three to five years. By spreading your loan over these additional years, your monthly payment is reduced. You can also request mortgage forbearance for a set period and then start making payments again. All these options will make it easier for you to catch up with your loan and get out of financial difficulties on time. Also, you will be able to save your home from foreclosure. Contact a bankruptcy or foreclosure attorney today and take necessary actions.