What Are My Options to Catch-up with a Mortgage in Ohio?
While most homeowners need a mortgage to successfully purchase a house, things can get scary and overwhelming if one gets behind on their payments. Thankfully, those living in Ohio have options to get caught up on their mortgage and back on track financially! Keep reading to discover the options that you have available if you are behind on your mortgage payments.
Bankruptcy for Mortgage Catch-Up
While no one likes the idea of filing bankruptcy, it may be necessary to regain your financial stability. A bankruptcy is not the end of the world, nor is it destined to destroy your credit for the rest of your life. Chapter 7 and Chapter 13 bankruptcies are two different options that offer homeowners the chance to rearrange their finances and catch-up on payments.
Chapter 7: Temporary Relief
While Chapter 7 bankruptcy helps many people, homeowners often find that it does not completely solve their mortgage problems. In a nutshell, Chapter 7 has the benefit of being completed in a much shorter amount of time, but only provides protection from your lender during those months. If you are unable to work out an agreement with the mortgage lender within that 3-4 month time-frame, then the lender will be back in charge. Well aware of your situation, the lender may only give you a handful of months to catch up on your payments, and they might even choose to start foreclosing on your property as soon as the case is over. Obviously, if you are in financial trouble, catching up within such a short amount of time maybe out of the question.
Chapter 13: Putting the Power in Your Hands
A Chapter 13 bankruptcy is a much longer process, lasting between 3-5 years. While this may seem like a negative, it actually provides homeowners with much better protection against lenders. Since you have most of the control during this time, you can play a role in setting up the amount of money that you can spend each month as you work toward making up your missed payments. When you are going through a Chapter 13 bankruptcy, you can rest assured that you will still have your home for years without the fear of foreclosure, giving you the chance to catch up on payments and get back on track.
Ensuring You Keep Your Home
If you choose a Chapter 13 bankruptcy, it’s important that you keep up with the monthly payments to your Chapter 13 Trustee. If you don’t make your payments, the lender can request relief from the bankruptcy stay and proceed with a foreclosure. Also, make sure that you keep up with your homeowner’s insurance and property taxes; failure to do so could give the lender additional grounds to request relief from the bankruptcy stay.
As you can see, bankruptcy is not a perfection solution; however, it can be the best option for those who are struggling to stay above water due to past mortgage payments. Don’t let your mortgage suffocate you – find out more about Chapter 13 bankruptcy today!
We welcome you to contact the team at Wood & Brewer LLC of Worthington, Ohio for your free consultation to explore how we may help you achieve your financial relief.