How to delay foreclosure using bankruptcy
One of the unfortunate events of the last 5 years was the ability to buy homes with little accountability by the lender. The lender would loan at low variable interest rates knowing full well when they reset a chance some people would not be able to continue to pay their mortgage. Mortgage companies knew this and accepted as a part of their business model. Both parties are at fault, the mortgage company and the people financing homes they knew deep down they could not afford.
With that being said, mortgage rates reset and people could no longer afford their homes. However, if the person can get over the physical aspect of losing their home they have a chance to be in a better position over the long run if they plan ahead and file bankruptcy. People are now planning their defaults and taking advantage of housing prices dropping. In addition, job losses began to mount and unemployment began to rise and the bankruptcy lawyer found he was very busy
Planning ahead for bankruptcy
Once you realize you can no longer afford your home you need to do your research and find out which bankruptcy you qualify for. You can file bankruptcy and erase credit card debt and not owe any money at all on previous debts including your home debt if you qualify for chapter 7.
Once you file, don’t reaffirm your home and quit paying your mortgage. The money you save living rent free you can sock it away and buy house on a land contract for cheap and then refinance it in three years. The house you bought for cheaper will have appreciated and you will have established a positive credit rating. Once you file bankruptcy the mortgage company by law can not continue to foreclose on your home. You save time and this should be last step.
People will tell you that you will ruin your credit, if you can afford your home and you lose it to foreclosure they your credit will be bad and you should file bankruptcy and wait the year it will take for the mortgage company to kick you out while saving your money the whole time.
Tags: bankruptcy, bankruptcy lawyer, erase credit card debt, foreclosure, mortgage default
