Bankruptcy should always be the very final option when it comes to a solution to save your home from foreclosure. Unfortunately, it is very devastating to you financially as it totally ruins your credit. And many people who use bankruptcy as an option end up going into foreclosure anyway.
Bankruptcy not only ruins your credit, but it can also cost you a job. An increasing number of companies are seeking a credit check on employee applicants. A bankruptcy can actually prevent you from getting hired as you will not be able to explain the reason for the bankruptcy, no matter how valid. An employer will take a look at the bankruptcy on your credit report and assume that you are unreliable and irresponsible.
Bankruptcy can also prevent you from getting another loan for years afterwards. This includes a car loan, mortgage or even installment loans with bad credit. There are many disadvantages to filing bankruptcy.
Chapter 7 bankruptcy allows you to discharge all of your debt and can, in some cases, allow you to keep your house - if you do not have more than 10 percent in equity in your home. If the home appraises out for more than 10 percent in equity, you may end up losing your home in bankruptcy court as the sale goes towards discharging your other debt. Chapter 7 Bankruptcy should not be used unless you have less than 10 percent equity in your home and owe a substantial amount of debt in unsecured credit cards. If you have been using your credit cards as a way to make the gap from paycheck to paycheck, you might find that you are heading towards foreclosure anyway. As you can only file a Chapter 7 bankruptcy once every 8 years, you may be stuck with a deficiency judgment that you cannot discharge.
Chapter 13 allows you to consolidate your debt but does not discharge it. This is the best option to choose when you are considering bankruptcy as a way to save your home. You can only file Chapter 13 bankruptcy every 6 months and it has a severe impact on your credit. You will have to pay your debt to a trustee assigned by the bankruptcy court judge on a monthly basis. At 1st Foreclosure Prevention, we have attorneys that understand about bankruptcy and can help you with this option if it is right for you. Due to the devastating nature of bankruptcy, this should only be the very last resort.
SELLING YOUR HOME TO STOP FORECLOSURE
SELLING YOUR HOME TO AN INVESTOR
When you use a loss mitigation company like 1st Foreclosure Prevention to help you with an investor sale, the firm can stop the foreclosure process immediately and you can then get ready to move out. Most of the time, the investor will give you a very flexible move out schedule. The advantages of this type of sale is that you do not have to worry about a foreclosure being on your record as the debt will reflect as paid on your credit report. You can walk away from a bad deal without having to look back and get a fresh new start in life. The disadvantage of this type of sale is that it can be very time consuming to line up the investor and get the lender to agree to take less in payment so that they do not have to go through the foreclosure process. This is why it is best to use a loss mitigation company that will tell you if you qualify for such a sale and can even facilitate it for you.
LISTING YOUR HOME WITH A REALTOR
The negative aspect to listing your home with a realtor is that you have to pay a sizeable fee to the realtor who lists the house that will eat into your equity. You will also have to pay taxes and other fees in most states. If the buyer wants a home inspection, you will have to pay for it and chances are that the inspection will reflect problems that the buyer wants you to fix. This can lead to more out of pocket expense.
Listing your home with a realtor also entails making sure that your home is presentable all of the time and having to have the home open for inspection at a moment's notice. These are all negatives when it comes to listing your home with a realtor. In addition, because home values have declined along with the number of buyers, you may find that you have quite a ways to go before your home is sold. There are so many more homes on the market than there are buyers that this may not be a viable option for you if you are facing foreclosure. If you decide to sell with a realtor, check out the rates offered by the real estate agencies associated with 1st Foreclosure Prevention. Real estate professionals make up part of our loss mitigation team and can work hard to get your property sold at a good commission rate.
When you are facing foreclosure, you do not have to feel helpless. There are many options open to you to help you stop foreclosure from happening to you with regard to trying to keep your home and selling your home. When you are facing foreclosure, you should talk to a loss mitigation specialist at 1st Foreclosure Prevention who can give you a free evaluation based upon your set of circumstances and further explain how the foreclosure process works, how it can be prevented and what impact it can have on your credit.
You do not have to feel helpless in the face of foreclosure. There is help available to you. Whether you wish to keep your home or if you just want to sell it and get a fresh start, loss mitigation specialists can help you find the right option that will work for you.
You have made the first move towards helping yourself avoid the foreclosure process in getting this report. Make the next move and contact 1st Foreclosure Prevention so that you can get a free foreclosure evaluation of your situation and find out the right next step that you can take to prevent foreclosure from happening to you.
Foreclosure Help - 1st Foreclosure Prevention negotiates with your lender to lower your mortgage payments, avoid foreclosure and negative credit impact.
|Created||11 Dec 2017|
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