declare bankruptcy to avoid foreclosure

Foreclosures, Short Sales, Tax Foreclosures
1

i didnt know you can declare bankruptcy to avoid foreclosure.
but i do not understand how might that save a owner. can someone explain it very briefly?

2

from the understanding I get out of this, it is possible to do this. It isnt going to stop the forclosure, it will only delay it, kind of like putting a band aid on a busted arm.

3

Bankruptcy postpones. Only. And you still owe the debt.

4

A Bankruptcy filing stops a foreclosure from progressing. Individuals will normally file either a chapter 7 or 13, with 13 being the most prevalent. Chapter 13 is designed to allow the debtor to repay all arrearages over a period of several years.

As a practical matter what happens is the homeowner files for bankruptcy protection. This alone will delay the foreclosure by 30-60 days at a minimum. Then if the debtor follows through by filing the required schedules, attending creditors meetings, filing a plan, etc. they will get a repayment plan approved. If they actually are able to stick to the plan the debts would be satisfied and the foreclosure would cancel. But in most cases they fail to stick to the plan and eventually the BK is discharged and the foreclosure can continue.

So with a minimum of effort on the pat of the homeowner, a BK filing should delay things for at least 5-6 months.

And then they can file again, irrespective of bankruptcy law, and delay it some more …

5

woah… i think i just found out a way to stop paying my mortgage.

6

not paying your mortgage? thats a good one. It will never happen. the bank has more money, more time, and can ride you out for 100 years. keep dreaming

7

this catch my attention how one can profit from the sub-prime
lenders crisis their are a lot of houses for sale !is it favorable for an investor? to answer your question, the owner can sell the property by carying back a promissory note that he can sell at a discount price to pay the lender :beer

8

WOW what a great idea how about if we stop the car payments and the credit card payments too and see if we cant get a full house of judgements on our record. :banghead