Foreclosure is a troubling epidemic that was brought to the forefront of America's conscious with the burst of the housing bubble several years ago. Many Americans who are tough working and honest folk are locating themselves falling behind on mortgage payments and receiving threatening messages from their lenders. If this is you then bankruptcy could be your way out but it may not be an enduring way out.
If you file bankruptcy before you're sued for foreclosure then you have the comfort of keeping an approaching foreclosure at bay. The "automatic stay" goes into effect when you file bankruptcy which means all your lenders are barred from continuing collection practices. This includes your lender going through with foreclosure process.
The Automatic Stay Doesn't Last Forever
If Chapter 7 bankruptcy is the type you filed then the bankruptcy is over after all your nonexempt assets have been liquidated and lenders have been paid off. If your mortgage debts were not paid in full then you will most probably hear from your lender after the bankruptcy has been filed and automatic stay has been lifted. Chances are they will be willing to cooperate with you because most moneylenders would rather take a hit on the interest to avoid the hassle of foreclosure.
Foreclosures are happening at an alarming rate all across the country. The best way to refrain from one is to retain an open line of communication with your mortgage lender. As stated above, most lenders don't want to foreclose unless absolutely necessary so they will more than probable be willing to work with you on reorganizing a payment plan. If you're worried about how filing bankruptcy will impact your current home or your ability to buy a home in the future then talk to a local bankruptcy lawyer today about your state's laws concerning bankruptcy and foreclosure.
