Will Filing Bankruptcy Stop Foreclosure On My Home

1 in 2 of every homeowner who owes mortgage will face foreclosure before completing their payment. It’s not because homeowners love to default on their payment but because unexpected situations usually show up that makes it difficult to meet up with monthly mortgage payment. Foreclosure usually follows after homeowners default on their payment for about 3 to 6 months depends on the state law. You will be notified before a foreclosure procedure will be initiated. Once it’s initiated, most lenders will kick against any form of loan workout as those options would have been made available before your lender process to initiate foreclosure.

In a situation like this, filing for bankruptcy seems like your best alternative. Filing for bankruptcy will not only help you stop foreclosure, but it will also give you the relief you need to get on track with your mortgage payments. There are various chapters of bankruptcy but the most beneficial is chapter 13 and chapter 11. Filing those chapters gives you a lot of benefits that include keeping your home which you won’t get with chapter 7 bankruptcy. Make sure you do enough research to find out which of the chapters is best for your financial situation and that won’t cost you more than you are willing to pay.

Even though you can file for bankruptcy a day before your house is sold and still stop the foreclosure sale, however, that is too much risk. You might not be able to get an attorney to help you out with such urgency, try to ask as early as you can even if it’s now. Contact a lawyer immediately and schedule a meeting.

Another benefit of acting now is that you will have enough time to discuss with your lawyer about your financial situation and he or she will be able to give you legal advice on how to approach the situation for better results.