Bank usually gives 4 months until your pre-foreclosure becomes a real deal foreclosure. During this time I would urge using your time wisely and look for alternative options. If you have tried talking terms with your loaner, a short sale or deed in lieu of foreclosure and none of these options have processed, it is time to look into bankruptcy.
Filing for personal bankruptcy can maybe avert or delay foreclosure on your property. For Example when you file for chapter 7 or chapter 13 bankruptcies, the court will subject you an “Automatic Stay.” This is a court order that will provide time and relief, where your creditors can’t collect right away. If your home is scheduled for foreclosure sale, it must be postponed, while you await the bankruptcy proceedings.
Filing for chapter 13 bankruptcy can help you rid of the payment on your 2nd or third mortgage. If your first mortgage is secured by the entire value of your home, you may no longer have any equity to secure the later mortgages. This will allow chapter 13 bankruptcy to drop the second and third mortgages and recognize them as unsecured debt. Which under Chapter 13 usually does not have to be paid back. To get this done correctly, be sure to hire a professional bankruptcy lawyer.
When you file for Chapter 7 bankruptcy, this won’t make your foreclosure vanish, but it can give you time. This can give you an extra couple months, before your house can be sold on you. This time can be vital, for ensuring a new living situation and saving up money. Chapter 7 can cancel your debt that is secured by your home; including the mortgage, as well second mortgage and home equity loans.
In conclusion, if you’re running into some financial problems, don’t brush off your problems and wait for the last minute to do anything. When you’re facing foreclosure, bankruptcy is something that can help buy you much needed time. Take this free bankruptcy advice on foreclosure seriously for it can one day help you get out of the situation!
