Hoffman Estates Bankruptcy Attorney Discusses Homes And Filing Bankr...

 I am often asked whether or not filing for bankruptcy can reduce the amount of a mortgage payment.  The general answer is no.  If you have a mortgage on a property and it is your principle residence, the mortgage company does not have to reduce the current payment amount.  There are other governmental programs and initiatives that may be of assistance to someone trying to reduce his or her monthly payment amount.  Filing bankruptcy would not be the best option if the sole purpose is to reduce the current monthly payment.

For those that simply cannot continue to make their payments, consider whether or not it is best to try and sell the property.  The bank may be willing to accept a short sale scenario.  This is where the bank agrees to take less than what is owed and in exchange, release the homeowner from any further liability.  The advantage to the bank is that there is no need to foreclose.  The advantage to the homeowner is that there is no deficiency amount owed.  Other options include a deed in lieu of foreclosure, straight sale or bankruptcy.

For more information, contact David M. Siegel & Associates at (847) 520-8100 or visit Hoffman Estates Bankruptcy.