Can Bankruptcy Stop Foreclosure ?
Many people facing foreclosures want to know can bankruptcy stop foreclosure. They think that if they file for bankruptcy, it can save their homes. Yes, it can, but it should not be your first option when looking for ways to stop foreclosure of your home. In fact, many people use bankruptcy as the last resort to keep their homes. (See Reference 1) |
Before rushing to file for bankruptcy, it is important to realize the pros and cons. Bankruptcy will spoil your credit rating and it will stay in your credit history for a period of 7 years. During this time, you will not get the most competitive loan rates. Also, it might get difficult to rent a home or apply for credit cards. On the other hand, filing for bankruptcy allows a person to make a repayment plan. It can also help a person repair their credit history. (See Reference 1) If you file for bankruptcy, you will have to pay extra every month to ensure that you meet the payments of your mortgage, but once bankruptcy is completed, you can return to paying your regular monthly installments without worrying about the foreclosure. (See Reference 1)
When you file for bankruptcy, the foreclosure procedure is stopped temporarily. Even the auctioning of the home by the loan provider can be stalled when a person files for bankruptcy. (See Reference 1) Using this method of stalling the foreclosure, a person can gain more time to look for ways to repay the mortgage and keep from losing their home.
However, bankruptcy should be the last resort in your list. You should first talk with the loan provider to see whether a different repayment plan that is more conducive to your financial situation can be worked out. Check with your family whether they can give you a loan to help pay the backlog on your mortgage payments. Try to refinance the mortgage on cheaper interest rate; or take an equity line of credit if you have built sufficient equity on your home. These are some of the options you should look at first before filing for bankruptcy.
As mentioned earlier, bankruptcy has adverse repercussions on a person's credit rating and credit history. Also, it is an expensive and complex procedure that needs to be first approved by the court. The procedure requires an expert bankruptcy lawyer who will guide a person correctly. Hence, it is important that a person look at bankruptcy to prevent foreclosure as a last resort. But it goes without saying that bankruptcy can stop foreclosure. (See Reference 1)
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Can Bankruptcy Stop Foreclosure
Many people have made their fortune in real estate. Some look to own rental properties, while others may fix up a property and then sell it for a fortune. There are also some people who buy foreclosed homes and then sell them for a profit. But given the current economic scenario and the downturn in the real estate industry, many people want to know whether it is possible to make a fortune from real estate foreclosures. 
