October 26, 2012 /24-7PressRelease/
-- After a long stretch of elevated foreclosure rates in Texas and around the country, recent months have brought some signs of stabilization in the real estate market. In July 2012, foreclosure rates in Austin dropped slightly in both month-to-month and year-over-year measurements. According to consumer analytics firm CoreLogic Inc., 1.05 percent of Austin homes were in some stage of foreclosure in July 2012, compared with 1.07 percent the previous month and 1.08 percent in July 2011.
Mortgage delinquencies also show signs of decline, with 2.88 percent of Austin mortgages at least 90 days overdue in July, compared with 2.95 percent the previous month and 3.13 percent in July of last year. Nationwide, 3.25 percent of mortgages were in foreclosure and another 6.7 percent were delinquent in July.
Other areas are also showing signs of improvement, with foreclosure listing firm Realty Trac Inc. reporting that Texas foreclosure filings dropped 5.7 percent statewide in July, compared with the same time last year. Nationwide, the trends are also encouraging: U.S. foreclosure activity hit a 5-year low in September 2012, down 7 percent from August and down 16 percent from September 2011.
Many Texas Homeowners Still Struggling
While the recent trends show signs of hope for recovery in the real estate market, many homeowners in the Austin area remain in a state of financial distress. After months or years of struggling to make ends meet in a weak economy, large numbers of Texas homeowners are now facing the loss of their homes due to unmanageable debt. In some cases, people who want to save their homes from foreclosure may be able to do so by filing for Chapter 13 bankruptcy.
Chapter 13 bankruptcy, which is sometimes called "reorganization" bankruptcy, is a type of bankruptcy that can help some people to get out of debt without having to surrender their assets, as is often required of people who file for Chapter 7 "liquidation" bankruptcy. Instead of surrendering assets in payment of their debts, people who file for Chapter 13 bankruptcy create a court-approved payment plan that allows them to make payments toward their highest priority debts over a period of three or five years.
Debts that are typically included in a Chapter 13 payment plan include delinquent taxes, delinquent mortgage payments and past-due child support payments, as well as secured debts like a home mortgage or car loan. Unsecured debts like credit card balances and medical bills typically are not included in the payment plan, although borrowers must make a good faith effort to make payments toward those debts if they have disposable income left over after making payments toward the plan. Borrowers who adhere to the payment plan can have certain remaining eligible debts discharged after completing the plan.
Immediate Foreclosure Protection With Chapter 13 Bankruptcy
Along with the repayment plan, Chapter 13 bankruptcy also offers homeowners another powerful tool that can help them stay in their homes: the automatic stay. An automatic stay is a court order that prevents creditors from taking collections actions like foreclosure or wage garnishment against the borrower after he or she has filed for bankruptcy. The automatic stay goes into effect immediately upon filing for bankruptcy, providing borrowers with protection from foreclosure while the bankruptcy case is pending.
To learn more about Chapter 13 bankruptcy and whether it may be right for you, discuss your situation with a qualified bankruptcy attorney in your area.
Article provided by Cantu & Hickson
Visit us at http://www.chbankruptcy.com/---
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