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1 out of 11 of all mortgages are now in default. “In default” is defined as missing one or more mortgage payments. Lets talk about it here. Sunday, June 27, 2010. Bankruptcy to Avoid Foreclosure. Chapter 13 Bankruptcy allows homeowners that have fallen behind on their mortgage payments with the need to stop foreclosure to reorganize their finances by eliminating or reducing unsecured debt, as well as, the preservation of both real estate holdings and vehicles. Disadvantages of a Bankruptcy:. O It is crit...
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