Bankruptcy as a Tool in Foreclosure Defense

Posted by on May 14, 2012 in Uncategorized | 1 comment

Bankruptcy as a debt relief option should not be considered lightly, but it can be used as a powerful tool in foreclosure defense. When homeowners are unable to keep up with high mortgage payments, mortgage lenders can use the foreclosure process against the indebted homeowner. When facing foreclosure, many homeowners make the mistake of contacting their lender first. Often, lenders will threaten the homeowner with swift foreclosure, causing the homeowner to panic and to either not take action or to agree to a workout solution they do not understand or cannot afford.

As a first step, instead of contacting the lender, many homeowners are learning the advantages of working with a BBB accredited debt settlement company whose network includes foreclosure defense attorneys, as only an attorney can determine whether or not you truly qualify for bankruptcy. The attorney you speak with will likely be experienced in such areas as mortgage and real estate law, as well as bankruptcy laws.

Homeowners who have been sued for foreclosure or who are about to be sued should take advantage of such a debt relief network immediately. In some situations, the bankruptcy process might possibly stop foreclosure, as bankruptcy law is a federal law that supersedes a state foreclosure lawsuit. It might also possibly postpone or prevent the homeowner from being evicted from the home. Homeowners must realize, however, that bankruptcy is a drastic option that has major consequences and effects on your financial future. It might be a viable option, though, particularly for those who have large assets (such as a house) to protect.

Both the foreclosure and the bankruptcy processes are complicated and exhaustive. Bankruptcy is not always a possible solution, nor is it always the best one, so homeowners must be proactive about educating themselves. Homeowners can try negotiating this process on their own, but working with a BBB accredited debt relief company with experience in foreclosure defense has many advantages.

Tags: bankruptcy, foreclosure defense, mortgage

*** This is an open blog. The contents of which do not necessarily represent the opinions and the policies of our company. If you’d like to share a blog post with us you can email us about your debt experience and we’ll post the blog for you.

One Response to “Bankruptcy as a Tool in Foreclosure Defense”

  1. Liens do not magically diapasepr after a bankruptcy discharge (which I assume is what you mean rather than dismiss because a bankruptcy dismissal results in none of your debts being discharged which defeats the purpose of filing). You are no longer personally liable but they have a perfected lien on the house. You may be able to get it avoided, BUT talk to your bankruptcy attorney, because this is dependent on a few factors (value of the house, homestead exemption, and amount of equity available). Whether you can get it done by that date depends on your attorney and the bankruptcy court schedule between now and then.

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