The number of underwater mortgages is finally going down - but those of us facing foreclosure aren't out of the woods yet.
In a rare bit of good housing news, Zillow.com recently announced that the amount of homeowners with underwater mortgages - in other words, those of us with a home worth less than what we owe on our mortgage - decreased from 23 percent to 21 percent in the last quarter. Fewer homeowners with negative equity means we might finally start seeing less foreclosures in coming months, according to Atlanta bankruptcy attorneys.
On the other hand, that doesn't do much to help folks currently - or soon to be - at risk of foreclosure.
With a sluggish economy, high unemployment and many homeowners swamped with credit card debt and other obligations, many people are simply unable to make mortgage payments right now. Unfortunately, lenders are none too sympathetic. When you fail to make your house payment - or even your property taxes - you violate your mortgage agreement, giving your lender the right to repossess your property, sometimes with almost no warning.
Since the recession began, foreclosures have become a normal part of our daily lives - and so have myths about how to stop them. One of the most popular rumors is that if you stop making your mortgage payments for awhile, it's no big deal. Unfortunately, that's merely wishful thinking. While it might take a while for the foreclosure notice to come in the mail when you stop making payments, it will arrive sooner or later. And even if you're able to start your payments back up again, you'll now owe late fees and other penalties - and your lender may even require that you pay off your mortgage in full in order to regain rights to your house. If you're unable to pay up, you could lose your house for real - and all that equity that you've paid into it over the years.
That's the scary part. But here's some relief. You can still stop foreclosure, whether you're thinking about skipping a payment or you've already received that dreaded foreclosure notice. With a Chapter 13 bankruptcy filing, you can trigger a legal action - known as the automatic stay - that will protect assets from lenders, including your house. Find out for free if bankruptcy is a better solution when you try a complimentary personal debt analysis with one of our Atlanta bankruptcy attorneys.
