Bankruptcy is looming on the horizon and Chapter 13 is beginning to look really good, but no one wants to give up the house.<\/p>\n
Using Chapter 13 will allow those facing bankruptcy to stop foreclosure and save their homes. In fact, Chapter 13 protects equity in the home, helps balance the mortgage default, and helps get rid of other crushing debts.<\/p>\n
Things seem to have come full circle in the mortgage industry, swinging from a once booming economy to a recession. Many people recall mortgage lenders used to offer really low adjustable rate mortgages, no money down mortgages, and 100% to 110% mortgage loans. Gone are those days.<\/p>\n
Nowadays adjustable rate mortgages have increased from roughly 5% to over 10% depending on who the lender happens to be. Homeowners are faced with suffocating mortgage payments virtually double what they used to be. As interest rates rise, so do the mortgage payments.<\/p>\n