There are indications seen by some companies that track real estate data that foreclosures may accelerate in the year 2012.  For various reasons, foreclosures have slowed, particularly in 2011, despite the ever increasing time during which mortgage payments have not been made.

For home owners who have not been making their mortgage payments, the passage of time may ultimately make it difficult if not impossible for them to save their homes.  The ever increasing mortgage arrearage may climb to a point where neither a chapter 13 bankruptcy nor a mortgage modification may solve the issue.  In a chapter 13 bankruptcy, mortgage arrearage can be repaid to the bank throughout a five year bankruptcy plan, and the regular mortgage payments would resume during that time.  While it is understandable that a home owner would try to modify their mortgage, the longer the modification process continues, the arrearage continues to grow.  If after many months the bank refuses the modification, or proposes a modification that does not really help, the chapter 13 bankruptcy can be much more expensive because there would be higher arrearage number to repay.  It should also be noted that people with a second mortgage, that depending on the value of their home, a second mortgage can be completely eliminated in a chapter 13 bankruptcy.

The important thing is for a home owner who is behind on their mortgage to get good advice early on so that the home owner can fully assess their options.  Merely waiting it out while the bank takes no action can lead to an unsolvable problem regarding saving your home.