Brandon, FL (Law Firm Newswire) November 30, 2011 – Struggling Central Florida homeowners have a new option to remain in their homes thanks to a program that has been successfully tested in Orlando federal court.
By filing for Chapter 13 bankruptcy and participating in the new mediation program available in Orlando, some homeowners have been able to restructure their mortgages, lower interest rates or even reduce loans on homes that were overvalued, according to a story in the St. Petersburg Times.
“Sometimes we have to make tough decisions and filing for Chapter 13 bankruptcy is not an easy one, but it can certainly be a better option than foreclosure,” said Brandon bankruptcy attorney Reginald Osenton, of Osenton Law Offices.
Chapter 13 bankruptcy will affect a homeowner’s credit rating, but compared to foreclosure, it shows future lenders that the homeowners were serious.
“This program could be just the right thing for a lot of homeowners who find themselves struggling to make payments on a home that is worth less than they originally paid for it,” Osenton said.
The program’s success rate in its first year has been promising, according to the Times. This year, about a third of the cases the federal judges sent to mediation were resolved with loan modifications. In 2010, only about four percent of the cases were successfully modified in state court. The program works for homeowners who still have a job and are continuing to make payments.
“Because this program aims to keep people in their homes, it will also be good for the economy,” Osenton said.
The program was scheduled to be introduced in the Tampa Bay area at the end of the summer. No figures are available yet on how many homeowners have inquired about it.
A qualified attorney in bankruptcy law and foreclosure prevention can help a homeowner navigate through the process. Osenton Law Offices will take every step to keep a homeowner in their home, make sure the laws are upheld, and minimize financial harm to an individual. Brandon foreclosure defense lawyer Reginald Osenton has more than 20 years of law experience in real estate and bankruptcy matters.
Osenton Law Office, PA
500 Lithia Pinecrest Road
Brandon, Florida 33511
Call: (813) 654-5777