If you’re in danger of losing your home, stop talking to your bank and start talking to a good bankruptcy attorney. When you buy a property and take out a mortgage with a lending institution, you are making a promise to pay off the mortgage monthly. If you are unable to do this, the bank or lending institution may decide to foreclose on the property.
If you get too far into debt then you might have to consider bankruptcy as a form of foreclosure relief. Remember that you only hold the equity title of your property until the mortgage is repaid; the bank owns the legal title which is why they are able to take it back from you and force you into foreclosure. Foreclosure relief through bankruptcy is available in many forms and you need to consult with a bankruptcy lawyer who will explain all of your options to you.
Bankruptcy is can be a way of stopping a foreclosure if things have gotten very severe. If you are deep in a financial hole, there is always a way out, especially if you make use of a bankruptcy lawyer who is an expert at bankruptcy/foreclosure litigation. While bankruptcy will not discharge your total debt to the lending institution, it may be a way to face the future after foreclosure. It is a form of foreclosure relief that will gives you the chance to re-think your financial strategy and come back after foreclosure even stronger than before.
Bankruptcy wipes out your personal financial obligation, but it does not stop the bank from foreclosing on your home. When you file a Chapter 7 or a Chapter 13 Bankruptcy, you are able to stop foreclosure before it happens. The very minute that you file for bankruptcy, under either of these Codes, any and all debt collection against you has to come to an immediate halt. This is known as an automatic stay and it will give you time to apply for foreclosure relief from one of the loan modification programs that have been instituted by the government or try to find other types of financing. The best thing you can do is contact a professional who will give you all of the advice you need as well as guide you through the process.