Foreclosure Help

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For those facing foreclosure, you have several options:

Option 1: Pay the piper. If you have not already received a statement from the attorney for your mortgage lender, here is a rough calculation:
Monthly payment x number of months behind, then
multiply that number by 1.05 (this is for the late fees), then
add at least $1,500 to that amount.
The $1,500 is for the attorney fees and costs of the foreclosure...yes, they want you to pay it. It could be more or less (not generally), but it is a start. This is called your arrearage. The attorney will want the whole amount, in the form of a cashier's check, by a certain date. Every day after that, the amount goes up. [Foreclosure timeline] How much? Another rough calculation:
Add the number you got above to the balance of your mortgage, then
multiply that by your interest rate (ex. 8% is .08) and then
divide that by 360.
Every day, the amount you owe is going up that much. An arrearage calculator is available here

Option 2: Refinance. We have only seen ONE example where a client was refinanced in the foreclosure, and that was with a local bank that our client had a 20 year relationship with. In our experience, no matter what your lender says, they will not refinance you. If it happens, please let us know...we will steer clients to that lender!

Option 3: Sell your home. You have some time, several months at least. If the market is generally good in your area, your home is in good shape and the price it could sell for will satisfy your mortgage(s), by all means, try. It is better to get out of a property with a little equity and no foreclosure sale against you.

Option 4: Walk away. Half of everyone foreclosed on in 2003, walked away from their home. We probably could have helped 60 or 70% of those people keep their home. It is not always possible to save a home. Divorce, significant changes in income or disability all create situations where the best we can do is help clean up the loose ends. However, just don't pack and go. The foreclosure process takes many months, months you can use to save some money and deal with your other debts. Before you leave, see us.

Option 5: Chapter 13. This scares the wits out of people. It shouldn't. It is a tool that allows people to get a second chance. And in our hands, we help better than 90% of the people that come see us. You owe it to yourself to at least come talk about it.

At your first meeting with me, we will sit down, together, and look at your entire situation. I will tell you all your options: perhaps the solution will be a Chapter 13 but maybe it will be something less. If Chapter 13 is the answer and you decide to hire me, you can count on me to work quickly and be as accessible as possible. If I don't answer, you can feel free to leave a message that will be answered as soon as I get hold of you. If you prefer, you can send email to


Chapter 13

From our free Bankruptcy Guide:

A Chapter 13 is also known as a debt consolidation or reorganization plan. The Federal Court supervises the repayment of your creditors: in fact, the Federal Court has appointed a "trustee" to pay your creditors with the monthly payment you will send to him or her. While you are making Chapter 13 payments, you will also be responsible to make payment on your normal living expenses such as rent or mortgage, utilities, food, clothing, tuition, etc. Please do not think that by filing a Chapter 13, your mortgage payment will be lowered. You are required to keep the payment of your normal living expenses totally current while making your trustee payment.