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Bankruptcy is it better then foreclosure 33
Thursday, 5 February 2009
The information mortgage 098

A Comparison of Bankruptcy and Foreclosure

Some people consider whether or not they should file bankruptcy or just let their mortgage lender foreclose on them? However, it is not as simple as a case of either /or and a decision cannot be made this easily. A foreclosure proceeding will be resorted to by a mortgage lender it the monthly mortgage obligations are not met. The single method of stopping this from happening in to make the payment to the mortgage lender. A mortgage loan is sort of like a car loan and if a person does not pay his car payment, he will lose the car through repossession. If you fail to make your monthly mortgage payments you too, could lose your home to foreclosure.

Bankruptcy is a last resort legal way to get out of paying your debts if you are unable to do so. While the debtor is going through bankruptcy, this step puts an end to anyone engaged in civil proceedings. So, by law, a mortgage lender has to suspend all legal actions including a foreclosure action. Even then to get relieve from the automatic stay a mortgage lender can go for legal action and when granted a stay can comfortably proceed with the further action. In short, bankruptcy will not allow a debtor to retain a house without paying his debt to the mortgage lender, and it will not halt the foreclosure process. Bankruptcy only slows down the process and does not eliminate the situation.

Bankruptcy can help give a person the needed time, and sometimes make it easier to pay their mortgage lender. It will not, however, stop foreclosure should they still not be able to pay. The debtor and a short time in which to come up with the needed funds, because the lender must suspend foreclosure when the debtor has filed for bankruptcy. Also, since bankruptcy can discharge some unsecured debts, a debtor may have more money with which to pay his mortgage payments. Also, a chapter 13 bankruptcy is a court ordered payment plan and allows a debtor to pay the mortgage catch up amount over a period of time.

If you qualify for bankruptcy, which you may not, there are still legal fees to pay. It could cost you more in legal fees and costs then it may to catch up your mortgage payments. If you are of the mind that declaring bankruptcy may benefit your situation and help you get out of a foreclosure, a good lawyer should be able to answer your questions. Because bankruptcy is very complicated, you ought not attempt to do it on your own.

Because this article is just general information you may need to contact an attorney in your state with any questions.



Julio Manisse
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BTW, i found a site about mortgage loans in spanish : prestamos hipotecas

 


Posted by marcelinocain927 at 9:16 AM EST
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