Help For Hurting Homeowners

If your monthly mortgage payment is overwhelming, and you are considering bankruptcy, take a look first at a government program called the Home Affordable Refinance Plan (HARP). By refinancing your home at a lower interest rate, you can slash mortgage payments by as much as $4,900 a year. To enable more struggling homeowners to take advantage of HARP, the application deadline has been extended to December 31, 2015. HARP has also expanded the eligibility criteria to offer assistance to more struggling homeowners. Requirements such as minimum credit scores and equity requirements have also been relaxed. If you’re a homeowner struggling with mortgage payments in the Chicago area, have an experienced Chicago bankruptcy lawyer determine if HARP is right for you. A good bankruptcy lawyer can also advise you regarding HARP’s financial and paperwork requirements.

A recent survey conducted by the Federal National Mortgage Association (Fannie Mae) revealed that 50 percent of homeowners have not refinanced their mortgage in the past three years, a period when mortgage rates have dropped to historic lows. But if your mortgage is less than $625,000, it’s probable that you’ll qualify for HARP. Even homeowners who’ve previously applied for refinancing and those who are “underwater” – you owe more on the mortgage than the home is currently worth – can refinance to a lower rate through the HARP program.

If you are struggling with debt, don’t jump to the conclusion that bankruptcy is your only practical alternative. It might be, but in many cases a good bankruptcy lawyer can familiarize you with programs like HARP; when HARP is combined with other options and programs, it’s quite possible for a homeowner to avoid bankruptcy. If you’re struggling with your mortgage payments and other debts in or near Chicago, don’t hesitate; talk about your options with an experienced Chicago bankruptcy lawyer as quickly as possible.