Foreclosure of real estate is sometimes a tough situation to figure out. Should I try to stop the foreclosure and save my house? Should I let the foreclosure proceed? What happens to a second mortgage? What are the possible tax implications?
Here is the key: Meet with an experienced bankruptcy attorney to find out your options before you make any major decisions. You may also need to meet with your tax professional as well before you have all the pieces to the puzzle.
Depending on your situation, bankruptcy may be the fastest, cost-effective option to save your home. Chapter 13 bankruptcy can stop a foreclosure and creates a 3 to 5-year payment plan that you can afford to pay back the missed payments. During this time, your lender is not allowed to foreclose on your home. If you can make up any back payments owed before the bankruptcy is over, you get to keep your home and continue paying on it as if nothing happened. And, those on-time mortgage payments can go a long way towards helping to rebuild your credit.
If bankruptcy sounds drastic, consider the impact a foreclosure and possible tax consequences.
Chapter 7 will also prevent foreclosure, however you are not given extra time to make up the missed payments. The automatic stay will prevent you from being foreclosed and evicted, but you will only have a few months to find a new place. However, you will be relieved of your legal obligation to pay off the mortgage, will could be a huge relief depending on your situation.
There is a lot to consider in making the decision. Meet with an experienced bankruptcy attorney for free to find out your options.
Over the past 30 years, the Law Offices of Christopher A. Benson has helped over 2,300 of Washington clients take control of their financial situations. We can stop your garnishment and change your monthly payments for all your combined unsecured debt, and if you have had more than $600 garnished within the last 90 days, we can get all of the money back in most cases. But you have to act quickly–call (253) 815-6940 for your free consultation, or email us today. Evening and weekend appointments available.
About the Author
Chris served on the Board of Directors for Habitat for Humanity
Seattle/S. King County for 10 years and served as Vice President
of the organization during part of that time. Read More