When foreclosure happens you can still make some money off it. You needn’t lose everything and go broke. When you are filing for bankruptcy if there is no foreclosure on your report then you can have the option of starting over again. It is worth trying.
Foreclosure Dos:
Before your house comes up for auction try and convince some buyer to buy your house. If you do find somebody; sell it immediately. You can keep whatever equity you can get.
No lender wants to lose money. If the lender thinks that the foreclosure of your house is going bite into his money, he is not going to go for it. Instead, he may come for a deal with you. If that is the case, it works for your advantage. Get the lender to make a deal with you and start afresh paying the loan on a workable agreement. That is almost second lease of life for you.
Filing bankruptcy can be very painful, but do you know there are different types of bankruptcies. There are Chapter 7 and Chapter 13 bankruptcies. If you choose the Chapter 7 bankruptcy, then you would lose all your assets, but would have your debts stricken off your name. If you go for Chapter 13, you will be able to hang on to your assets, but you will be paying off the loan as the court orders you to.
You got to make a decision on which one would be profitable to you and accordingly file the bankruptcy.
Deed in lieu for foreclosure is akin to renaming the owner of the property. You wouldn’t own the property, but the bank would and you will agree to it. That is deed in lieu for foreclosure.
Short sale is something wherein the court grants you permission to sell your house and pay off the debts. Of course, they can ask you pay the difference from the sale to the lender and you should be wary of that. If you are sure that you are not going to be able to pay the difference, then it’s best not to go for it.
Finally, if you have had enough and decide it is just not worth it; then leave. If the housing mortgage and its problems are what you think about all day and work towards and get depressed for at the cost of not caring for your family and foregoing simple pleasures in life, its time to walk out.
Remember, even walking out shouldn’t be an impulsive decision. You have to talk to a person who is knowledgeable about this and get to know if they can still sue you for whatever money you have left. Make a wise decision calculating your finances for survival and the threat to it from the lender.
Foreclosure Don’ts:
Never sign over your house to a different company. The companies would come to you asking for your property to be signed off in their name and promise you that they will pay the mortgages until they fall in line. Once it happens, then they will turn your property back over to you. Nice thought. Well, the catch is that they are not that noble. It seldom happens. Instead, they get their name on the property and foreclose it for gains and you can do nothing about it. You see, you are no more the owner of it.
The next threat is from the companies who will offer you a second mortgage on basis of the equity. It will consist of astronomical interest rates. The companies hope that you do not pay on time as the interest rates are impossible to pay given your situation and then take over your home.
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