Minnesota Home Foreclosure and Chapter 13 Bankruptcy

If you cannot afford to make payments on your home in Minnesota you have to consider the options.  If you are behind on payments a Chapter 13 bankruptcy allows you to stay in your home if you can afford your regular house payment, plus a payment to cover the arrears on the property.  In many cases our clients cannot afford the regular house payment and need to pursue a mortgage modification to lower the payments.  This is not effective for the majority of our clients, and even if it is effective most clients drop out of the payment plan after having the mortgage modified.  Lenders are bad at changing the payment terms and oftentimes lose documents repeatedly as part of the modification process.
The other option for clients is giving the property back and then filing a chapter 7 or chapter 13 bankruptcy to clean up the rest of the debt.  In many cases lenders are pursuing 2nd and 3rd mortgages outside of the foreclosure process in Minnesota.  This results in a large judgement for people who have let their home go, without dealing with the 2nd mortgage.  In some cases it is best to give up a home that is too expensive our too far underwater, in order to right a clients financial ship.  If too much of your income is going to your home, you will not be able to afford to retire, or save any money for a rainy day.  If you are thinking about letting your home go, or want to make payments to save your home, give our office a call to discuss your options at 952-294-0144 or get more information online at www.bolinskelaw.com