Stopping Home Foreclosure with Bankruptcy

Bankruptcy Will Stop Your Sale - At Least For Now For $395, you can stop your sale- at least that is what the ads say. You are about to find out how bankruptcy can be good or very damaging.

Bankruptcy will stop your foreclosure sale. It's a fact. However, filing bankruptcy for the sole purpose of stopping foreclosure is not what bankruptcy is for. And anyone that does this to avoid foreclosure is in violation of bankruptcy laws. Here is some basic information on bankruptcy.

What Is Bankruptcy?

There are two types of bankruptcy, Chapter 7 and Chapter 13. Filing for a Chapter 7 bankruptcy means you are asking the courts to completely discharge your debts. Filing for a Chapter 13 bankruptcy is when you set up a court- approved plan to repay your debts.

Now, the two types of bankruptcy:

1. Chapter 13: Chapter 13 bankruptcy is a repayment plan that will restructure your arrearage. More than 95% of all Ch. 13 bankruptcies filed fail. When you file the Ch. 13, this will postpone your foreclosure sale until the meeting of creditors also known as a 341 meeting. This usually takes place 60-90 days after you file. Also, when you file a Ch. 13, you are paying for 2 attorneys, your attorney to file and another to take payments and disperse the money to the creditors. At the meeting, you will have to face your creditors. Many times this can be very intimidating. The bank will ask for their money or for the judge to give them a relief of stay. The relief of stay is asking for the foreclosure to continue. If granted the attorney will re-start the foreclosure process over with a set foreclosure sale date around 30-45 days later. IF you do not have some money for reinstatement for the Mortgage Company or bank, the judge will likely grant the relief of stay. As you can see, bankruptcy will stop your sale, but it is only temporary. Now, you have to deal with the foreclosure process all over again plus now your credit is in worse shape than before because you now have a filed bankruptcy that is showing up on your credit file.

2. Chapter 7 ? A Ch. 7 bankruptcy is when you request complete debt relief. When you file a Ch. 7, you are trying to receive a discharge from all your debts that you list in your bankruptcy. If you get a discharge, this will relieve you of all your debts that are listed. Now, the bank can still get a relief of stay with a Ch. 7 Bankruptcy. Even if you receive a discharge, the bank can still take the home through foreclosure. When you get a discharge this relieves you from the debt and the responsibilities of the debt, however the Mortgage is attached to your house as a protection for the bank and their interest. Therefore, the bank can foreclose even if you have received a Ch. 7 discharge.

Bankruptcy will destroy your credit rating, therefore be careful when you speak with Bankruptcy Attorneys, this may be the only option that they know of. In other words, when you talk to someone that does bankruptcies they will influence you to file bankruptcy, when you talk to a mortgage officer or bank official, they will want to influence you to get a loan because that is what bankers do, if you talk to an investor they want to buy your house, because that is what investors do, SO be careful and look out, find someone that does not have an agenda that can give you strategic advice regarding your current situation. The rate of people that declare bankruptcy for a second time is as much as 50%. In some instances, bankruptcy may be a good choice, but all too often it causes more stress and problems for the individual. So try to resolve without the use of bankruptcy.

Jimmy Cox http://www.365homenet.com

---

Interior Design Secrets for Selling Houses

New concepts in Interior Design Psychology are helping home sellers... Read More

Types Of Real Estate - An Investors Choice

There are different types of real estate, and different ways... Read More

Should Sellers Order a Pre-sale Home Inspection?

One of the main reasons home sale transactions fall apart... Read More

Buying Houses: Types of Bargains to Find

To make a good profit in real estate, you must... Read More

Selling Your Home on Your Own ? Examples of Problems and Solutions

What can go wrong? About a gazillion things, but this... Read More

Probate & Obituary Marketing

I start my marketing with obituaries followed with probate filings... Read More

Attention To Details Helps Homeowners Sell Fast In A Buyers Market

Your boss has just given you the career opportunity of... Read More

How I Became a Real Estate Investor

Recently I closed on the sale of two homes. They... Read More

Popping The Real Estate Bubble Myth!

If you turn on the TV, listen to the radio,... Read More

Make Money As A Slumlord

Be a slumlord? Okay, I got your attention, now the... Read More

Investing in Residential Real Estate: Achieving Positive Cash Flow

When investing in real estate, it is highly desirable to... Read More

Dont Sell It Yourself

Don't sell it yourself! Sometimes a "FSBO," or house "for... Read More

What To Expect In Closing Costs On A Home Purchase

Many are taking advantage of this year's low mortgage rates... Read More

Home Inspections or Home Warranty?

Homebuyers are a curious lot. They routinely ask thought-provoking questions.... Read More

Successful Property Letting And Management

Successful Property Letting And Management is not something that just... Read More

3 Strategies For Buying Property With No Money Down

Everyone has heard a story or read about someone who... Read More

Houses For Sale By Owner - Negotiating Tips

Houses for sale by owner, also known as "FSBOs," are... Read More

6 REASONS for Investing in Florida Real Estate Investment Property NOW

I invite you to take the next few minutes to... Read More

Feel At Home Faster After You Move

Moving to a new community can be a great adventure,... Read More

Investment Property Part I: How Not to Become a Slumlord

After riding the ups and downs of the stock market... Read More

Why Commercial Real Estate is the Hottest Retirement Asset

For small business owners, commercial real estate investment is the... Read More

Finance Your Real Estate Investment Properties

Unlike traditional residential real estate mortgages, real estate investment financing... Read More

Home Not Selling In Todays Hot Market? Tips and Ideas to Help You Sell

So, your selling your home. Prepare yourself both physically and... Read More

San Diego Real Estate

San Diego is home to millions of beautiful apartments, condominiums,... Read More

RESPA: The Real Estate Settlement Procedures Act

The Real Estate Settlement Procedures Act (RESPA) is a consumer... Read More

Find the Right Apartment Quickly and Easily Using an Apartment Locator Service

You've probably seen the ads or heard about apartment locators.... Read More

Investing in Real Estate & REITs

Real estate investing runs the gamut in terms of risk... Read More

Refinancing Your Home Loan? When Should You Refinance Your Home?

If you have a current mortgage and are unhappy with... Read More

Important Facts For Home Buyers

If you are considering buying a home or have spent... Read More

A Real Estate Primer

There are a great many books and web sites devoted... Read More

Why Not To Invest In Bulgarian Property

According to research carried out by the Thomson Group, owning... Read More

How to Make a Buyer Fall in Love with Your Home

If you are thinking of selling your home, there are... Read More

Maintaining Small Town Charm In An Ever-Changing World

Virtually any state in the country has the appeal of... Read More