If owning a home is the American dream, then facing foreclosure must be a nightmare. As foreclosure rates have gone up over recent months, some Pennsylvania homeowners might be worried that there are not any options when they are unable to make their mortgage payments. However, filing for bankruptcy can sometimes be helpful for saving the home.
In July 2019, foreclosure rates increased 6% for month-over-month. During that time, lenders initiated foreclosure processes for 26,055 property owners. The majority of the places that experienced significant increases in foreclosure are located along the East Coast, but major metropolitan areas were also affected.
One major Pennsylvania city — Philadelphia — was among those with the highest foreclosure rates for cities with populations of at least one million people. Lenders started foreclosure proceedings on one out of every 1,276 housing units in that city. Many smaller cities and towns also saw higher foreclosure rates than in more recent months.
A homeowner does not have to live in a major city to struggle with paying a mortgage. Whether it is because of a single financial emergency or through the slow accumulation of debt, virtually anyone anywhere could experience this problem. Saving the home is a priority for these homeowners, which means being proactive. Some lenders will work with Pennsylvania homeowners for lower payments, but this may not be enough for a person who is struggling with too much debt. Instead, bankruptcy could be a more appropriate option, particularly since simply filing generally stops the foreclosure process pending the further order of the court.