Natural calamities such as hurricanes can destroy an entire town and its belongings. In such cases, many mortgage companies offer borrowers who have been affected by these tragedies participation in forbearance program. Under this program, elaborate Los Angeles based bankruptcy law firm https://recoverylawgroup.com/ lawyers, the mortgage payments are suspended for a stipulated time period. This can be a boon for people who have been facing financial issues. with the forbearance of mortgage payments, debtors are provided time to get back on their feet before recommencing their mortgage payments. In the case of natural disasters, forbearance programs allow people adequate time to repair or rebuild their damaged home.
However, many forbearance programs ask the borrower to make their mortgages current by the time the forbearance period ends. This becomes too much of a financial burden on a person trying to get hold of their life after losing everything in the storm. Unfortunately, many people who have chosen to opt for a forbearance program are unaware of this clause. By the time they become aware of any such thing, it is too late for them to accumulate such a huge amount. Risk of foreclosure is high in such cases and therefore it can send many people in deep distress.
Many times, the borrowers are unable to finish the repair work on their home or don’t have enough insurance to cover the cost of repairs. To keep their home from the snatches of mortgage companies, while trying to build the roof back on the head is not an easy task. Losing their home to mortgage companies once again is worse than losing it the first time to any natural calamity.
However, there are ways through which you can make your mortgage payments while resisting foreclosure. You can either opt for a loan modification, where all forbearance payments will be combined to form a new principle sum; or you could opt for Chapter 13 bankruptcy. in the latter case, regular mortgage payments can be made every month and you could also make forbearance payments over the 3-5 years period. This is a more affordable option, considering that you can use Chapter 13 to manage your other debts as well. An attorney well versed with bankruptcy and foreclosure can help you in such cases. you can fix an appointment with skilled bankruptcy lawyers by calling 888-297-6023.