How Can I Cure a Delinquent Mortgage?

When dealing with a delinquent mortgage, you need to investigate the options that are available to you. Your goal is likely to find a way to cure the delinquency and bring the mortgage current. If this is your aim, Chapter 7 bankruptcy or Chapter 13 bankruptcy may be the best plan of action for you. In accordance with the U.S. Bankruptcy Code, you can file for bankruptcy to cure a delinquent mortgage and legally protect yourself from foreclosure.

The first step is to find out which Chapter of bankruptcy is best for your financial situation. Chapter 13 helps you to contrive a repayment plan, while Chapter 7 discharges most, or even all, of your debts. When you file for either of these bankruptcy Chapters, you will notate that you intend to cure your delinquent mortgage through a reaffirmation agreement with your mortgage lender during the bankruptcy proceedings.
Contact your mortgage lender in writing and let them know you intend to reaffirm your mortgage loan through bankruptcy proceedings. When you reaffirm a loan, you retain possession and ownership of the home/property and the mortgage loan is adjusted to reflect a current status, and you make an agreement to keep the account current in the future.

The mortgage lender can prepare a reaffirmation agreement, or you can acquire one from the bankruptcy court trustee. It is very important to follow the terms of your reaffirmation agreement and keep the mortgage current and make your future payments in a timely fashion. Don't ever forget to consult with a bankruptcy attorney before making any decisions. If you own a business or reside in the State of Connecticut, be sure to contact a Connecticut Law Firm that specializes in bankruptcy.
Richard Croce - Rich@rrc-llc.com