Chapter 13 Is The Best Option In A Down Market

I speak to property owners, realtors and mortgage brokers often, sometimes daily. Here’s the latest picture. Very few homeowners have enough equity to qualify for refinancing or for selling to make sense (because they won’t even break even). Properties are not moving. They are sitting on the market for 6 to 12 months. Deed in lieu offers are becoming more prevalent as owners simply try to avoid foreclosure sales and walk away calling it “even” with the lender. Forbearance agreements are always an option for those who have some funds saved but many don’t have the initial payment the lenders demand – usually half of the reinstatement amount. For those who want to save their property and who have regular income, Chapter 13 remains the best option in the current market.