If you have defaulted on your home line of credit or a reverse mortgage you have several options.
- Work out an agreement with the bank. This may sound complicated, but many times banks have programs to help get you back on your feet after a bout of financial trouble.
- Refinance. This is sometimes available, and we even know businesses that will work to purchase your note from your bank to then refinance to you. Instead of doing a short sale, the business will negotiate with your bank for a short pay off.
- Declare bankruptcy to buy time. A chapter 7 should only be used if you do not have enough equity in your home that would make the chapter 7 bankruptcy trustee want to sell your home. After the bankruptcy, you always have the choice to reaffirm the debt.
- If you are just looking to get caught up on payments, you could file for a chapter 13 bankruptcy and begin to make payments to the chapter 13 bankruptcy trustee to pay off your HELOC or reverse mortgage.
- You also always have the option to sell your home if you have equity. You can cash out and downsize if that makes sense for your situation.
Talk with a Foreclosure Defense attorney near you to go over all of your options.