Report Finds Bank Repossessions Rose in Utah in May

Falling behind on your mortgage payment and facing the possibility of losing your home is a terrifying prospect for anyone. Unfortunately, despite the seemingly improving economy, a large number of Americans continue to struggle to keep up with their mortgage payments to prevent their home from going into foreclosure.

According to a report recently released by RealtyTrac, the number of bank repossessions in Utah increased in May from the month prior. Across the country, bank repossessions rose by 11 percent in May 2013.

While the same report revealed that foreclosure activity decreased in May from the year prior, it was up from the month before. In total, foreclosure activity has been decreasing — May 2013 saw a 29 percent decrease in foreclosure activity from May 2012.

Nevertheless, the decrease has not always continued steadily month-by-month. For instance, while around 33 percent fewer foreclosures were initiated in May 2013 from the year prior, approximately 4 percent more foreclosures began in May 2013 from April 2013.

Some have speculated that banks have more motivation to repossess properties now, as the housing market has started to improve. As demand for houses is higher, banks are able to obtain higher prices for foreclosed properties.

Prevent Foreclosure By Filing For Chapter 13 Bankruptcy

Those who have fallen behind on mortgage payments need not resign themselves to the eventual loss of their home through foreclosure. For some people, filing for Chapter 13 bankruptcy is an appropriate option that allows them to regain solid financial footing and save their home.

Under Chapter 13 bankruptcy, the individual establishes a repayment plan, through which he or she can repay certain debts over a period of time. If the foreclosure process has already been initiated on the homeowner's residence, filing for Chapter 13 bankruptcy can stop the proceedings. Once an individual has filed for Chapter 13 bankruptcy, an automatic stay goes into effect, which prevents creditors from seeking payments from the individual and stops foreclosure proceedings.

Upon completing the terms of the repayment plan, which will generally include making mortgage payments during the term of the repayment plan, debts that qualify will then be discharged. In other words, the individual will no longer be responsible for repaying the discharged debts.

If you are struggling to make your mortgage payment every month and are at risk of losing your home, there are options available to prevent the foreclosure process. In such cases, a skilled bankruptcy attorney will be able to provide advice on the best course of action for your situation to help stop your home from going into foreclosure.