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Local:423-954-7180
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Foreclosures still high for many seeking debt relief

For many Chattanooga residents, their worst fear is to lose their home. However, trying to seek debt relief from the bank in order to avoid losing the home can often be an incredibly difficult process; it seems that many people are now facing the same problem.

According to sources that track foreclosures, the filings have increased ten percent from January to February. In total, over 70,000 homes faced the start of foreclosure last month. However, the good news is that filings are still down 25 percent from this time last year. Foreclosure filings, on the other hand, increased 2 percent during the same period. That includes default notices, auctions and any "real estate owned" property.

Additionally, it seems that Chattanooga experienced a significant increase in January of this year, but then a decrease in February. Still, an overall increase in foreclosure sales nationwide is not a good sign, as the economy tries to recover and homeowners try to finally get past this crisis.

No matter what the national market looks like, for any individual struggling with mortgage payments, it is always a difficult process. Sometimes, one of the only sure ways to save a home is to file a consumer bankruptcy. Either a Chapter 7 bankruptcy or Chapter 13 bankruptcy can be used to prevent foreclosure and allow for repayment. A Chapter 13 plan can include a repayment plan for any default on the mortgage. Oftentimes, filing for bankruptcy is one of the most straightforward ways to get debt relief and be able to overcome financial challenges, even if the homeowner's income is greatly diminished.

Many people who are suffering from a difficult time paying their mortgage and other bills understands that even with the best intentions, sometimes it just becomes overwhelming. Even though it is often difficult to ask for it, help should to be sought out in order to finally get a fresh start.

Source: Reuters, "New U.S. foreclosure filings rise in February: RealtyTrac," March 14, 2013

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-954-7180
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