Catching up on Your Utah Home Mortgage

Under a Chapter 13 payment plan you have much, much more time to catch up on both unpaid mortgage payments and property taxes.  

Last week we wrote a blog post that listed 10 ways Chapter 13 helps you keep your home. Here’s the first of those ways it can help:

1. Gives You More Time to Catch up on Unpaid Mortgage Payments

Chapter 7 usually gives you a very limited amount of time, usually a year at the most, to catch up on your mortgage loan. In contrast Chapter 13 often gives you years to catch up. This can greatly …

Ten Ways to Save Your Utah Home through Chapter 13

These 10 tools provide huge relief with your first mortgage, second or third mortgage, property taxes, and other Utah home-related debts.
A few blog posts ago we said that while Chapter 7 “straight bankruptcy” strengthens your hand with your secured debts, Chapter 13 can be much stronger. One way that Chapter 13 is stronger is in enabling you to keep things you own which have a secured creditor’s lien on them. Indeed, that’s probably the most common reason for filing a Chapter 13 case—to keep your home, vehicle, and/or other possessions at risk of repossession.
Because Chapter 13 can help…

“Strip” Your Underwater Second Mortgage

If your second mortgage (or 3rd) is not backed by any of the home’s equity, “strip” that mortgage off your home’s title and stop paying it.  

Our last two blog posts were about using Chapter 13 “adjustment of debts” as a practical way to catch up on late mortgage payments and property taxes. You always have to get current on property taxes and virtually always have to with your primary mortgage obligation. Chapter 13 gives you the time and protection to do this.

But if you have a second or third mortgage, you might not have to catch up…

A Fresh Start by “Stripping” Your Second Mortgage

Stripping your second mortgage in Utah could give your home the very best fresh start by saving you a tremendous amount of money.   If You Can’t Afford the Monthly Payments on Your Home Last week we compared three ways to save a home in which you’re behind on your mortgage payments: mortgage modification, a forbearance agreement, and Chapter 13. Mortgage modification is the only one of these three which lowers the monthly payment on your first mortgage. A forbearance agreement just gives you a number of months to catch up on missed mortgage payments, during the same time that…

A Mortgage Modification Fresh Start for your Home

Mortgage modification may reduce your monthly payments on your Utah mortgage but not likely reduce your balance owed. So it costs less short-term, not long-term. Quick Definition A mortgage modification is a permanent restructuring of one or more of the terms of the mortgage intended to make it more affordable on a monthly basis. Compared to Forbearance Agreement A mortgage modification is intended to deal with the permanent unaffordability of the mortgage payment, while a forbearance agreement deals with a short-term unaffordability. With a forbearance agreement the monthly mortgage payments don’t change. The lender simply gives you a limited time…

Save Your Utah Home

If you want to save your Utah home and are behind on payments, do a mortgage modification, a forbearance agreement, or a Chapter 13 plan.   The Three Options Here’s a summary of 3 ways to get a fresh start on your mortgage — saving Utahns’ homes:
  • A mortgage modification is a permanent restructuring of one or more of the terms of the mortgage to make it more affordable. This usually involves a reduced interest rate, the conversion of a variable interest rate to a fixed one, an extended payback period (often to 40 years), or a deferral of paying part

Making Sense of Bankruptcy in Utah: 5 Additional Ways Chapter 13 Saves Your Home

Here are 5 more tools that Chapter 13 gives you to solve particular challenge to keeping your home.

 

Here’s a summary of today’s blog post:

Adding to the 5 tools in our last blog post, today’s 5 include: 6) protecting your home equity if it’s greater than the homestead exemption, 7) giving you much more time to live in your home before selling it, 8) dealing effectively with child/spousal support liens against your home, 9) resolving an income tax lien on dischargeable income taxes, and 10) preventing foreclosure from overdue property taxes.

6. Avoid a Chapter 7

Making Sense of Utah Bankruptcy: Strip a Second (or Third) Mortgage Off Your Home

If you qualify in Utah, stripping a junior mortgage from the title to your home could make it worth saving while making it possible to do so.   In this “Making Sense” series, we’re helping you understand bankruptcy by explaining each of its important concepts through a single sentence. But this concept of mortgage stripping will take two sentences, one to show the huge benefit of stripping your second (or third) mortgage, and the second to explain how to qualify for this mortgage strip. The two sentences:

If you qualify for removing (stripping) your second or third mortgage from your home’s …

Utah’s New Year Resolution #2: Learn about Powerful Ways Bankruptcy Can Save Your Home

In Utah, Chapter 7 “straight bankruptcy” & especially Chapter 13 “adjustment of debts” come with some truly powerful tools for preserving your home.   Here’s an impressive but still partial list how these two kinds of consumer bankruptcy can help you keep your home, or to preserve for yourself the cash equity in your home. With a Chapter 7 case:
  • Immediately stop a foreclosure by your mortgage lender to give you time to:
    • do a mortgage modification,
    • catch up on the back mortgage payments, or
    • sell your home to keep all or most of the equity.
  • “Discharge”—legally write off—your other debts

Crucial Question for Cache Valley Residents: When Should You Consider a Chapter 13 Case Even if Chapter 7 Would Enable You to Save Your Home?

Chapter 13 has so many benefits—many directly helping to keep your house—that it’s worth finding out what it can do for you.   Why You’d Be Tempted to Not Even Think about Chapter 13 Chapter 7 “straight bankruptcy” usually takes no more than 3 to 4 months from filing to completion. Chapter 13 “adjustment of debts,” in contrast, usually takes 3 to 5 years. And usually costs significantly more. Why in the world would someone use Chapter 13, especially after determining that they can solve their home mortgage problem with a Chapter 7 case? 10 Good Reasons to Check Out