The loss of one's house may be the most severe and emotionally unsettling result of a home foreclosure. When one defaults on a home mortgage - refuses or is unable to make monthly payments according to their loan contract - they face repossession of their house by the bank that holds their primary mortgage.
In recent years, declining home values, loss of income and chronic unemployment have forced many U.S. homeowners into a previously unthinkable process. If you are worried about losing your house, you may want to consider a Chapter 13 bankruptcy filing, which may help stop home foreclosure.
Learn more about foreclosure protections afforded by Chapter 13 by speaking with a local bankruptcy attorney.
Homeowners dealing with foreclosure can face a new set of problems once the bank takes possession, including:
The impact of a foreclosure on one's credit score, or FICO score, varies depending on the situation. A foreclosure can impact a credit score by an estimated 85-160 points, and the net impact of financial problems surrounding foreclosure can be much greater.
Still, every situation is unique. Factors that influence credit score, with and without a foreclosure include:
Generally, a foreclosure stays on a credit report for 7 years after it has been entered into public records. A lawyer familiar with bankruptcy and foreclosure proceedings can explain the possible credit consequences associated with each of your options. You can also get advice on your credit reporting rights.
The prospect of a foreclosure is daunting, but you do have choices. If you are unable to continue making payments on your home, your options may include: foreclosure, deed-in-lieu of foreclosure, or short sale. A bankruptcy attorney can act on your behalf to help you make the best decision.
You may want to secure some extra time to protect yourself and your home. As mentioned earlier, in most cases filing Chapter 13 bankruptcy can stop the foreclosure process by way of the automatic stay. Learn more about protections afforded by Chapter 13, including stopping foreclosure, by filling out the review form below now to connect with a bankruptcy attorney in your area.