Mortgages and Bankruptcy
Facing mounting debts that bring one to the point of considering bankruptcy can be challenging. Financial obligations that were once manageable can seem overwhelming, especially those debts which are to be repaid in a constant payment amount over an extended period of time, such as a mortgage.
A mortgage is a loan designed to assist buyers in financing the purchase of their home or property. These can vary widely in type, interest rate, and amount depending on the credit of the recipients. But once the terms of a mortgage have been set, financial institutions are often hesitant to allow for more lenient payment plans or to offer extensions to debtors. Instead, they may choose to seize their property or valuables.
Losing Your Home in Bankruptcy
People that have mortgages on their homes as well as other expensive investments may be in danger of losing their primary residence. While bankruptcy courts can modify the terms of some agreements, such as those attached to a car, boat, vacation property, and others, home loans and mortgages are typically unchangeable.
This rule often puts homeowners in a difficult situation, because their most expensive investment cannot be reduced, and gives an unfair advantage to debtors that own multiple properties. Many people feel that this is not an arrangement that is advantageous to everyone, but as it stands there are no further options for people in need of extensions on their mortgages.
If you are considering bankruptcy and have questions regarding the process or its alternatives, seeking legal counsel may be helpful. Contact the Florida bankruptcy attorneys at the law offices of Ryan J. Really at (239) 237-0675 to discuss your options with a qualified lawyer today.