The latest foreclosure statistics are in, and things are looking up - sort of.
The good news is that slightly less homeowners are underwater, a term used to describe when your home is worth less than what you owe on your mortgage. The amount of U.S. homeowners with negative equity fell from 23 percent to 21 percent this spring, according to a report by Zillow.com. Though it looks like a small change, it means we could see fewer foreclosures in the future, say Chicago bankruptcy attorneys.
Still, any amount of foreclosures is too many - and with more than one of every 1,000 homes being seized in the month of June, many at risk homeowners need financial help.
Thanks to a lousy economy, unstable job market and the inability of homeowners to refinance too-high mortgages, many folks are forced to prioritize other bills over their house payments. Unfortunately, failure to make pay mortgage or property taxes puts you in direct violation of your mortgage contract - and that means your lender has the right to repossess your home, sometimes with very little notice.
As foreclosures have increased, so have rumors about how to stop them. Many people believe they can get away without paying the mortgage - that their lender simply won't notice, at least for a while. Unfortunately, that's either wishful thinking or flat-out denial. If you stop making house payments, the bank will take your property away sooner or later. Everything you paid into it over the years will be gone - not to mention you won't have a place to live. Even if you are able to start paying your mortgage again, you'll be liable for late fees and penalties - your bank may even demand you pay off your whole house upfront in order to get it back.
That's the bad news. The good news is that, if you're still in your home, it's never too late to stop foreclosure. By filing for Chapter 13 bankruptcy, you can take advantage of the automatic stay, a legal action that protects assets from lenders - including your house. Even better news: it's free to find out if there's a bankruptcy plan right for your family when you try a complimentary personal debt analysis courtesy of a Chicago bankruptcy attorney.
