As the foreclosure crisis continues many potential buyers searching for foreclosure deals are once again eyeing “affordable” mortgages. But it’s important that future homeowners move cautiously because it is often these types of loans that are the most vulnerable to foreclosure. One of the pitfalls of “affordable” mortgages which often include low (or no) down payments, adjustable rate loans and larger payments waiting down the road, is that most borrowers who buy into these programs are not able to afford the payments once they reset a higher rate or once insurance and taxes are added to the bill. Many of these homeowners who have “affordable” mortgages eventually face foreclosure because their budgets cannot cope with the mortgage’s real costs.
If you’re a homeowner facing foreclosure because of an “affordable” loan which has become unaffordable you may want to attempt to refinance or modify the loan under one of the current programs being offered by the government and participating mortgage lenders. Read our previous blog ” Persistence And Information Pays Off When Facing Foreclosure ” for more information, including the direct phone numbers of major mortgage lenders’ loss mitigation departments. A homeowner facing foreclosure because of an unaffordable mortgage may also want to consider bankruptcy. Chapter 13 bankruptcy and Chapter 7 bankruptcy are both viable options for protecting a homeowner’s assets when facing foreclosure. To find out more about how bankruptcy can save your home from foreclosure, contact a Dallas-Fort Worth Bankruptcy Attorney .