Can I Keep My House?

It’s a tragic part of any economic downturn, but one that we’ve seen in clear relief over the past decade or so. The 2008 financial crisis moved to a significant extent on foreclosures and mortgage defaults, and today’s coronavirus problem is also putting many family homes in jeopardy.

One key consideration is to understand your rights under the law, and what you can do to delay or protect against foreclosure.

To many experts, a foreclosure is inherently a disruptive event in our economies. It takes the fundamental asset of the family and their immediate shelter and gives it over to a bank, which often doesn’t know what to do with the property, except resell it at a fire sale.

In some senses, nobody really wins from foreclosure, and that’s why the government has set up programs and options to help homeowners to stay afloat, even in dire circumstances.

Raiding the IRA or 401k

We are often told not to touch our retirement assets at great peril – but if you’re facing foreclosure, that’s not the time to worry about what might happen in your golden years. It’s imperative to keep a roof over your head, and so taking long-term assets to pay off a mortgage is not financially irresponsible at all. That’s one of the first steps on the way to figuring out how to beat foreclosure and keep the bank from taking your home.

Loan Modifications and Forbearance

Then, also, the government has set up loan modification programs that can help homeowners to handle unprecedented financial pressure. If you’ve lost your job because of the coronavirus, or your small business can’t pay bills anymore due to lack of customers, there are programs in place to safeguard your investment in your property. Some of these are relatively complex and may not be feasible for homeowners who don’t understand the nature of a home mortgage or real estate law, but with the right assistance, many embattled homeowners can come out on top.

Bankruptcy and Related Options

Along with mortgage forbearance and loan modification programs, there are bankruptcy options in which the applicant can keep some of their core assets. In a Chapter 7 bankruptcy, many homeowners can retain their property. In a Chapter 13 bankruptcy, a plan can be set forward for repayment over time. These are additional options that are very valuable to those who have been facing the perils of a mortgage default through no fault of their own.

The Hedtke Law Firm helps clients to decipher all of these options and make the right choices to safeguard their investments in assets. We understand what you’re facing, and we can take you through the process with compassionate and caring guidance that will see you safely out the other side of one of these deals.