Contrary to the popular misconception that federal bankruptcy prevents foreclosure, it only delays it. If you want to prevent a foreclosure, all you have to do is repay the loan which can be done either by selling the house, refinancing it, or obtaining a loan modification.
Most homeowners hire a bankruptcy attorney to file bankruptcy so that they can save their house from foreclosure. And these attorneys will put your home in to bankruptcy without telling you other intricacies of the whole process and will be great for benefit for availing personal bankruptcy advice. Bankruptcy filing is a good option for many but it might not be the best choice for everyone. This is because, if a homeowner goes for bankruptcy filing, then loan modification programs of only a certain type can be taken. But a homeowner needs many options of a loan modification program because it is not a one size fits all solution. Variety is a blessing when it comes to loan modification.
Recently, a wide range of loan modification programs has been launched for homeowners who have chosen bankruptcy filing. Bankruptcy should be the last choice. Adding to the difficulty of filing bankruptcy, recent reforms have made it tougher for people to qualify for a chapter 7 bankruptcies.
Around 66-75% of homeowners who file a chapter 13 bankruptcy are unable to finish the plan, so foreclosure without bankruptcy protection takes place and this leaves a black stain on their credit report. Chapter 13 bankruptcy gives the bankruptcy attorney more commission and this is why they often force the borrower to choose this option. This is because chapter 13 bankruptcy plan goes on for 3-5 years. Filing for bankruptcy is a cumbersome task if you don’t follow the right approach. You should choose a proper loan modification program so that you get the maximum benefits.
Thanks for the post.
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