Stop Foreclosure on Your Greater Detroit Home
If you are getting behind on your mortgage payment or are facing foreclosure, Chapter 13 bankruptcy may be the best option for you to keep your home. Once you file a Chapter 13 in Michigan, an “automatic stay” is placed on your home, prohibiting the mortgage company from proceeding with the foreclosure. The arrears you owe are placed into a monthly payment that is tailor made for you by your attorney. Chapter 13 bankruptcy gives you some breathing room and time to get back on track with your finances, all the while saving your home from foreclosure.
Additionally, Chapter 13 bankruptcy may be able to drastically reduce other debts that you have, such as interest payments on your vehicle. It may also be able to reduce or eliminate your unsecured debt entirely, like credit cards and medical bills. So, there are many benefits to filing Chapter 13 other than simply stopping foreclosure. With the house market crash a few years ago in the Detroit area, many clients are eligible to eliminate their second mortgage altogether. This is commonly known as “lien stripping.” If you have more than one mortgage on your home, and the value of your home is less than what you owe on your first mortgage, you may qualify to eliminate the second mortgage altogether and never pay it back. Debt Relief Center will file a Chapter 13 bankruptcy for you and file a special motion with the Court to strip the lien and eliminate your second mortgage.