mortgage foreclosure

Guest

I had taken a mortgage some 5 years ago but failed to pay off within the allotted time. My friend suggested that I file a bankruptcy. I know it has adverse affects though, but I have decided to go for it. I want to know how I should file for bankruptcy and if it is too late because the lender has already decided to carry out a foreclosure.

Caron · Posted: Thu Sep 22, 2005 10:09 pm Post subject: RE:

Hi Jason

It's sad to know about your condition. I can very well understand what you are going through. But you need not worry. There are ways by which you can get out of this situation.

You can file bankruptcy in this case. When you file bankruptcy, the process of foreclosure gets delayed because the bankruptcy court works on your case. Until the court discharges you from the bankruptcy and gives the permission to carry on with the foreclosure proceedings, your lender cannot go on with the process.

But filing a bankruptcy also affects your credit status. The bankruptcy in this case may or may not make sense depending on your income and other obligations. I would advice that you approach a bankruptcy attorney who is aware of the relevant laws and procedures. He will be able to guide you in the process.

Hope to hear from you soon.

Regards,
Caron.

Guest

Is it safe to get a foreclosure loan?

Sam · Posted: Wed Sep 28, 2005 3:45 am Post subject: RE:

Hi Simon,

Welcome to the Forums.

The need for foreclosure arises when you fail to pay off your mortgage loan. Most borrowers try to stop foreclosure by taking a foreclosure loan and making the mortgage payments. But it is not at all safe because in most cases, a lender dealing with such loans ask you to deed your property to him claiming it as a temporary measure to prevent foreclosure. The lender can even borrow against your property or try to sell it to someone else. He can also treat you as a tenant using your mortgage payments as rent. And, if you are unable to pay, the lender can force you out from your property.

What I would suggest is that you look out for government or private assistance programs to resolve this kind of a situation. You will find this solution to be far more effective than getting a new loan.

Thanks,
Sam

Guest

Hi! can u pls help me. I had to go through foreclosure and now it feels worse to think that it has got listed in my credit report. My friends say it will be hard to get loans in future. Someone advised that I file bankruptcy to remove the affect of foreclosure from the report.is it going to help?

Samantha · Posted: Sun Oct 02, 2005 9:11 am Post subject: RE:

Hi George

It seems that you are in a difficult situation indeed and I can very well imagine what you are going through. But don't worry, we do come across such situations in life and the best thing is to overcome them rather than lose hope.

Let me tell you that filing a bankruptcy is not the ideal solution in this case. A bankruptcy does help you to get rid off your debts within a short time but it also affects your credit score just like a foreclosure does. Moreover, a foreclosure remains listed on your credit report for 7 years from the date of foreclosure but a bankruptcy on the other hand remains in the report for about 10 years.

What I would suggest is that you work towards improving your credit profile, that is, you should start paying your bills in time and avoid late payments on any of your credits. Start managing your accounts well so that you don't end up using much of the available credit. But you need to follow this for quite some time, may be a number of years so that it can reduce the affect of foreclosure on your credit report. This will help you to acquire loans that don't ask for high rates, which is often charged in case of borrowers having poor credit.

Regards,
Samantha.

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