If foreclosure help were like advertisements for food or clothing, it would be easy to get help. The sad reality is that banks and lenders do not want to educate you on the ways that you can stop foreclosure. A common question that is asked is can bankruptcy stop foreclosure from happening. Yes, it is possible to avoid foreclosure with bankruptcy.
It is important to understand the process of foreclosure to determine if bankruptcy is the best option. When you get behind on your house payments, your lender immediately takes notice and contacts its legal team to start the process of foreclosure. You are always the last to know when foreclosure has been filed. Depending on the state where you live your lender can expedite foreclosure making it harder to stop.
How Foreclosure Affects Bankruptcy
When foreclosure has started, lenders require the full payment of a mortgage not just what is overdue. This misconception rapidly routes homeowners into the foreclosure whirlwind and homes are sold fast. You must know the phase of foreclosure that you are in before you consider bankruptcy. You have likely done research on bankruptcy and already know how damaging bankruptcy is to your credit. The phase of foreclosure that you are in might not save you even if you file for bankruptcy to stop foreclosure from happening.
The type of bankruptcy that you are considering will affect foreclosure prevention. Chapter 7 has specific rules about the acquisition and sale of your personal property. Chapter 13 can extend payment arrangements to help you repay your debt including past mortgage payments. The timeline to prevent foreclosure with a bankruptcy is very limited. Banks and lenders keep track of every notice that is sent to you. Demands are typically made that include due dates you are required to follow if you want to stop a foreclosure.
How Bankruptcy Can Stop Foreclosure
The sale date of your property is the last notice that you will receive from a mortgage lender or bank during foreclosure. In order to prevent foreclosure, filing bankruptcy before the sale date is arranged and sent to you is key. Once a sale date has been set bankruptcy protection cannot help you. There are other ways to stop foreclosure without bankruptcy. The damage done to your credit during bankruptcy is severe. You will have extreme difficulty getting approval for any loan, apartment lease or credit card for nearly a decade.
Call Avoid Foreclosure at 1-800-589-4106 and get help to stop foreclosure without filing bankruptcy.