Beware of common foreclosure avoidance scams

While the economy is slowly starting to recover, many individuals that were negatively impacted during the last recession are still having difficulties making ends meet. These financial struggles are common in communities throughout the country, including many families right here in Utah.

Many of these financial concerns can be tied to home ownership. These families purchased properties before the market crashed. This left them with extremely high mortgage payments for properties whose values have diminished substantially. Many of these individuals feel that they have no choice but to let the properties go into foreclosure.

Unfortunately, some companies have targeted these individuals offering to help them get out of financial trouble. They promise to work with lenders to reduce monthly payments, thereby allowing families to remain in their homes. They charge the homeowners outrageous upfront fees for their services before even starting on any work.

Often, the borrowers find themselves in a much more difficult situation after hiring one of these companies. The money paid to the organization disappears, and the borrower is left with less money and a string of broken promises. They frequently find themselves more behind on their bills, with fewer options available to get out of debt.

Homeowners experiencing these sorts of problems may wish to consider filing for bankruptcy. Bankruptcy can provide a great deal of relief while allowing these individuals to potentially keep their homes.

Filing for bankruptcy puts a stop to any collection actions that are currently underway until the process is complete. This is an especially important feature of bankruptcy, and something that is extremely helpful to debtors. It provides valuable time to rebuild finances to address some of the bills that may have been piling up.

In Chapter 13 bankruptcy, the dischargeable debts are combined, so that the individual makes a monthly payment plan to deal with the past-due debts. This lasts for three to five years, and once complete, all dischargeable debt is extinguished.

If you are facing foreclosure, you have options that are available. It is very important that you understand the consequences of these options to learn what is best for your family’s financial future.

An experienced bankruptcy attorney can sit down with you and review your specific situation. This will allow you to discuss what is most important to you, and create a solution that best fits these needs.

Every person will have different issues that they need to address at this time. Failing to craft a plan that is unique to your needs can lead to the same problems coming back in the future.