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Avoid Foreclosure

Home foreclosures are far too common and the hardship endured by Rhode Islanders and people throughout the country when their homes are foreclosed upon can be extremely difficult. Unmanageable debt and mortgage arrears can spiral out of control, and the fear of losing your home often leads to paralysis instead of taking concrete steps to avoid foreclosure and to stay in your home. Preventing foreclosure and maintaining homeownership is frequently the primary objective of my clients. In the state of Rhode Island, once a foreclosure occurs, it cannot be reversed. Delaying action can have serious consequences. If you’re ready to take action and do everything you can to prevent an imminent foreclosure and stay in your home, please call me.

Each individual’s circumstances are different, but there are several possible options to avoid foreclosure. While filing for bankruptcy is perhaps the most well-known method of stopping foreclosure on a home, loan modifications are frequently a viable alternative to filing for bankruptcy. We provide information that might help you decide if a loan modification is right for you on our RI home loan modifications page.


“When I met Attorney Goldman for the first time I was under a great deal of financial and emotional stress. I was unsure of the bankruptcy process and she patiently explained my options and I no longer felt as though I was going it alone. Working with Attorney Goldman and her staff has helped me get through one of the most difficult times in my life, and I feel like I’ve been given a second chance to get back on my feet.”

Chapter 7 Bankruptcy to Avoid Foreclosure

A chapter 7 petition will stop the process for a short time, but depending on your exact situation, it might not be the best option if you are hoping to stay in your home.

Chapter 13 Bankruptcy with Loan Modification

Just like with a Chapter 7 bankruptcy, a stay goes into effect as soon as a Chapter 13 bankruptcy filing is made with the court, and a lender or creditor has to stop all collection activity, and it can only resume with permission from the court. For those Rhode Island homeowners seeking to avoid foreclosure, particularly those with mortgage arrears and/or high interest rates, the best path is usually Loss Mitigation. Rhode Island is one of the few states that has a loss mitigation program. Through this program, RI home owners can pursue a loan modification. While you’re in the loss mitigation program, the foreclosure process is stopped. If you pursue a loan modification outside of the Loss Mitigation process, you don’t have the same protection that the Rhode Island bankruptcy court offers. Each situation varies, but with a loan modification via Rhode Island’s Loss Mitigation program, you may be able to reduce your interest rate, reduce your monthly payment to the mortgage company, and your mortgage might be able to be re-written with any past due amounts placed at the end of your mortgage note.

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