Bankruptcy will stop a scheduled foreclosure sale from taking place. This is one of the many methods to stop foreclosure available to homeowners in need of mortgage help. However, it should only be considered as a last result. How do you know when it is time to pull the bankruptcy card?
This article explains when to consider bankruptcy as a means to stop foreclosure.
Below I have created a simple checklist ton look over before you schedule an appointment with an attorney to consider filing bankruptcy.
Homeowner Condition Checklist Before Bankruptcy Option
- Homeowner is unable to sell their home via a shorty sale or regular sale before the date of the foreclosure sale at a sufficient price that the lender will take in lieu of the foreclosure.
- Homeowner is unable to negotiate a deed in lieu of foreclosure agreement with the lender.
- Negotiations with the lender to lower mortgage payment via a loan modification have failed.
- All other possible mortgage solutions have been denied by the lender.
- Homeowner is unable to obtain a workable solution via Government help programs such as the Obama loan modification program known as HAMP or the Obama refinance known as HARP. Also a new program is in the works for high loan to value refinance assistance.
- No other sources of reasonable financing is available to the homeowner.
If the above list has been exhausted then it may be time to schedule an appointment with your attorney to talk about bankruptcy options.