Among the country’s 20 largest metropolitan areas, the New York area saw the biggest increase in foreclosure filings during the third quarter of this year. According to data provider RealtyTrac Inc., the region saw a 69 percent increase in default, repossession and auction filings, counter to the national trend. While more than three-fifths of U.S. metropolitan areas saw filings decrease from the same period last year, New York filings increased as lenders began working through a backlog of pending foreclosures. New York has the nation’s longest foreclosure process.
Filing for Chapter 13 bankruptcy may be an option for New York area homeowners who are facing foreclosure. Chapter 13 bankruptcy, also called a wage-earner’s plan, allows individuals who have a regular source of income to develop a debt repayment plan to pay creditors in installments over three to five years. The length of the plan depends in part on the debtor’s current monthly income.
Individuals who file for Chapter 13 bankruptcy may also be able to stop foreclosure actions and cure delinquent payments over time as long as they make timely mortgage payments during the Chapter 13 repayment plan period.
If you are facing foreclosure of your home, it would be beneficial to speak to an experienced bankruptcy attorney before you vacate your home. An attorney assesses whether filing for Chapter 13 is an option for you. Additionally, banks must follow specific procedures before they can foreclose on a home. An attorney experienced in foreclosure defense can help protect your rights.
Source: Bloomberg News, “New York Area Has Biggest Jump in Foreclosure Filings,” Dan Levy and Prashant Gopal, Oct. 25, 2012by