Foreclosure, Foreclosure, Foreclosure
October 18, 2022 | Foreclosure
The number of homeowners facing foreclosure has increased steadily in the past 12 months as pandemic-era assistance has largely expired. As of August 2022 the initiation of foreclosure proceedings was 85% of what they were in August 2019, a return to what might be considered “normal” levels of homeowners in distress.
While foreclosure rates in Nebraska remain relatively low compared to other states, the state Iowa has the 17th-highest foreclosure rate in the nation at the moment. [For more information see: https://www.sofi.com/learn/content/foreclosure-rates-for-50-states/ ]
The cause(s) of the increase in foreclosure filings can be attributed to a number of factors including the aforementioned expiration of pandemic-era assistance, inflation, and lack of cost-of-living-adjustments for people on fixed income. Rising interest rates have made it harder for distressed homeowners to refinance or otherwise reach their equity without having to sell the home.
Chapter 13 bankruptcy is not for everyone, but it IS a court-supervised debt restructuring program that WILL stop a foreclosure proceeding and give the homeowner an opportunity to propose a plan to come current on their mortgage loan.
Additionally, any other existing debt, including credit cards, medical bills, vehicle loans, taxes, etc., can be restructured as well. In many cases the person or couple filing for Chapter 13 bankruptcy will see a significant improvement in their monthly finances as more cash is freed up to live instead of it all going to service outstanding debt.
High & Younes offers no-cost, no-obligation consultations with an experienced attorney who will provide quality legal analysis to determine if Chapter 13 bankruptcy is a good fit for you. Contact us at (402) 933-3345 to learn more.
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