Imagine working for years to obtain your dream home. Now imagine coming back from a family trip to receive a single letter in the mail, a letter that will change your world and shatter your dreams. Sure you’ve been behind on your mortgage, but you never thought it would come to this. You never thought you would have to wake up from the American Dream and have the home where you raised your family threatened by foreclosure.
During the past few years, Michigan has been hit hard by the downward economic spiral. Although the number of foreclosure filings has decreased since last year, the total number of foreclosures remains high. It has been reported that Michigan foreclosure filings occur at a rate of one out of every 324 homes. This means the possibility of having their home foreclosed on is still a looming reality for many Michigan families.
According to a recent article by Cami Reister of the Grand Rapids Press, Michigan “remains in the top 10 for highest number of filings and the highest foreclosure rates… [as] Michigan has the seventh highest foreclosure rate in the nation.” People within various cities and counties in Michigan are losing their homes every day. Some Michigan Bankruptcy Attorneys are working diligently to solve this problem and prevent hardworking citizens from losing their homes.
In the last few years, the Obama Administration has also tried to reduce the number of foreclosures with the Making Homes Affordable Act (MHA). The MHA gives homeowners an opportunity to avoid foreclosure by providing a plan to refinance and restructure their mortgage to a lower interest rate. The Making Homes Affordable Act also sets up a low payment rate for those who qualify, through the Home Affordable Modification Program. This program helps those who have lost their jobs or who are facing financial difficulty by assisting them with staying current on their mortgage payments.
There are other ways to decrease the number of foreclosures. A short sale is one example. However, short sales can cause bad credit, and it may be a few years before a person can buy another home. Simply trying to renegotiate a loan with the Bank is another example of a way to avoid foreclosure, but without a skilled bankruptcy attorney, a homeowner faces the possibility of paying a higher interest rate.
Foreclosure threatens your ability to receive a mortgage for another house. Foreclosure harms your credit rating. Fortunately, there are skilled attorneys practicing Bankruptcy law who can help homeowners, as these attorneys know how to use Chapter 13 of the Bankruptcy Code to stop foreclosures and protect your rights.
One can only hope that the economic downturn will soon pass and an economic rise will forever remain. Yet, until that day comes, Michigan residents should seek out aggressive bankruptcy attorneys who will fight to make sure that the number of foreclosures reaches an all-time low, and that the American dream of owning a home remains a reality.