Once a person becomes severely delinquent on mortgage payments, the mortgage company will likely start foreclosure proceedings. The mortgage company usually will not accept any payment less than the full amount needed to bring the loan current after foreclosure proceedings are started. Those faced with a foreclosure often look to the court-supervised repayment plan of a Chapter 13 bankruptcy to allow them to force the mortgage company to accept a repayment plan to catch up the mortgage payments over a three to five year period. The filing of a Chapter 13 bankruptcy will stop a pending foreclosure sale in almost all circumstances.
Photo Credit - Jeff Turner