The Seattle Times reports today on the increasing rate of foreclosures, and notes that foreclosures in the Seattle area are up 64 percent from last year at this time. The article correctly points out that the best way to deal with a lender is to start talking early, but it fails to tell homeowners what to do to get a lender’s attention. So many of our callers report that when they call the mortgage company, they are told that no one will help them unless they are already behind!

Housing counselors are a great resource for people facing foreclosure, but they are already swamped and some programs can only help people who are low income. Unfortunately, sometimes filing bankruptcy is the only option to avoid a foreclosure.

In a Chapter 13 case, the foreclosure sale is automatically stopped and the borrower is given an opportunity to propose a plan based on their income and expenses. Not all homeowners can afford the necessary payments under a Chapter 13, but if they can, the mortgage company is required to accept them. In addition, if there are problems or questions about the amount of the loan or about irregularities in how the loan was obtained, we can look at that in the course of the bankruptcy case too.

On our website, we have lots of additional information about Chapter 13 and how it works. Start here, and then also review the FAQ’s. We are happy to meet with you for a free consultation about whether Chapter 13 bankruptcy is the best option for you to avoid a foreclosure and save your home.