CAN BANKRUPTCY HELP STOP FORECLOSURE?

The question many always ask us is can bankruptcy help stop foreclosure?

The answer is not simple. When the banks are either unwilling or unable to work out a loan adjustment to make your mortgage payments affordable and you don't have serious RESPA or TILA violations in your loan to justify a lawsuit, your best option to avoid foreclosure at this point is to file bankruptcy, if you qualify. 

The answer to this question depends on your specific situation and if an experienced bankruptcy attorney would be able to assist you identifying your options, the types of bankruptcy available to you (Chapter 7, Chapter 11 or Chapter 13) and their respective pros and cons.

If you have received a Notice of Sale and you are not engaged in an active loan modification, you should hire an attorney immediately

That is, if you wish to keep your home. A Notice of Sale implies that your home will be sold at an auction in 20-30 days from the recording date of the Notice. In most cases, filing bankruptcy would stop foreclosure almost immediately, at least temporarily. The long term outcome is something that you should be discussing with your attorney at this point. After reviewing your files, your attorney will present you the best course of action based on your case and on the foreclosure lawsof your state, even if it conflicts with the path you have intended to pursue. Although we recommend that you follow your attorney's advice as they know which route will bring forth the best results, only you know what you are wiling to live with or without.

If you haven't yet received a Notice of Sale, you have a little more time to learn more about bankruptcy, its short and long term impact on your credit and to find the right attorney to assist you with the process if you choose to follow that route.

Many foreclosure and or bankruptcy attorneys offer free consultations. Please consult an experienced bankruptcy attorney in your area to find out more about this issue.

HOW TO STOP A FORECLOSURE?

If your house is well into the home foreclosure process, you may be asking yourself “How to stop foreclosure?” If you wish to stop foreclosure and keep your home, consider these options:

  • Refinance if the fair market value of your home allows it. The interest rates have stabilized a bit.
  • Discuss with your lender the possibility of a mortgage modification or loan modification.
  • Sign up for the Making Home Affordable program.
  • Sign up for NACA Home Save Program.
  • Talk to local real estate lawyers about foreclosure, bankruptcy chapter 7, bankruptcy chapter 13, and how you can save your home.

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Can Bankruptcy Help Stop Foreclosure
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