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Chapter 13 Bankruptcy: Past Due House Payments and Denied Loan Modification Requests

  • By: Christopher Benson
  • Published: March 26, 2010

Chapter 13 Bankruptcy Allows Homeowners 36 months to cure past due house payments

Bankruptcy Attorney

Federal Way Auburn Lake Tapps Bonney Lake Puyallup Tacoma Seattle

Over the past few months, many people have tried to modify their existing home loans. Unfortunately, most people have run into long delays concerning their lender.

People are under the impression that if they stop making their house payment that it will somehow “speed up” the lender’s decision process.

The reality is that missing house payments does not “speed up” the process at all. What it really does is put the homeowner at risk of having their house foreclosed.

Alot of people I have met with lately have missed their house payments and then had the lender deny their request for a loan modification. Now, those same people are 6, 7, 8, 9 months are more past due and facing a pending foreclosure of their home.

Here is the good news: By filing for Chapter 13 bankruptcy protection, a homeowner can propose a plan to cure the past due arrearage over 36 months, avoid foreclosure and save their house! That gives a person 3 years to make up the missed payments and save their house.

Christopher Benson

About the Author Chris served on the Board of Directors for Habitat for Humanity
Seattle/S. King County for 10 years and served as Vice President
of the organization during part of that time. Read More