Filing for bankruptcy provides several specific benefits. These include stopping a mortgage loan from going into foreclosure. A Chapter 13 bankruptcy may well allow a homeowner to catch up on the delinquent payments if it is filed before a foreclosure sale.
Jackson residents may be interested in the fact that Lender Processing Services released a report on the mortgage delinquency rate in the United States on Oct. 22. This report stated that the delinquency rate increased from 6.87 percent in August to 7.4 percent in September. This does, however, still represent a 4.19 percent decrease in the delinquency rate from the same period in 2011.
LPS bases these statistics on mortgage loans that are at least 30 days overdue but are not already in foreclosure. The report also shows that the total number of delinquent mortgages in the United States is about 3.7 million, with 1.53 million of these being at least 90 days overdue. An additional 1.94 million properties are already in foreclosure but are not yet on the market.
The states with the highest rate of delinquent mortgages are Florida, Mississippi, New Jersey and Nevada, according to the LPS report. The states with the lowest delinquency rates are Montana, Arkansas and South Dakota. RealtyTrac also reported on Oct. 22 that 65 percent of counties’ housing markets are now worse off than they were four years ago.
Homeowners who are behind on their payments will need to consider all legal options when selecting the best way to keep their homes. This includes both bankruptcy and alternative approaches. Seeking good advice can help them with this process.
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