I recently read an article in the Detroit Free Press by Frank Witsil, “Number of foreclosures in metro Detroit skyrockets.” The article discusses how a combination of factors including low housing sales, loss of income, and increases in adjustable rate mortgages have created “the perfect storm” and caused the foreclosure rates to increase dramatically. He also reports that the foreclosure trend is predicted to worsen.
The article goes on to give several tips on avoiding foreclosure, but fails to even mention that Chapter 13 bankruptcy is a viable (and possibly the best) means to legally stop a foreclosure. The filing of a Chapter 13 bankruptcyimmediately stops any further collection activity, including a foreclosure sale, and gives qualified homeowners a minimum of three years to repay any mortgage arrears. I’ve seen many people save their homes by filing a Chapter 13 bankruptcy and have always felt that it’s the cheapest and safest way to avoid a foreclosure sale if your mortgage company refuses to work with you.
If you are living in Detroit and are facing a foreclosure, you can learn more about Bankruptcy Laws in Michigan and complete a free legal evaluation form to talk to a Detroit bankruptcy attorney about how a Chapter 13 bankruptcy might help save your home from foreclosure.