Don’t Rush Into Bankruptcy Because Of Foreclosure
Foreclosures have been rife in recent years and this has caused many homeowners, or their legal representatives, to closely inspect their situation. As many would know, lending institutions have been in the habit of trading mortgages and often the company forcing the foreclosure is totally unknown to the homeowner. This has also brought to light a lot of anomalies in these mortgages, anomalies that may work in the homeowners favor.
There is consumer protection legislation in place that outlines the procedure for instigating a foreclosure. There are also regulations governing how lenders process and manage high value loans like mortgages – it is these regulations that many lenders have fallen afoul of. A recent article on Foreclosure Errors correctly points out that:
…..uncovering errors can produce real results for troubled home owners. Home owners may be able to make a good case for halting a foreclosure if the bank can’t show it has the right to foreclose.
These errors are in the minority and they won’t necessarily prevent a foreclosure from proceeding. They may, however, delay a foreclosure and this could offer a debtor the opportunity to seek alternatives. Bankruptcy is one option, as is refinancing. A delay of six months could be sufficient for homeowners with low debts to get back on their feet and to bring their mortgage up to date.
The moment you’re home is under threat from foreclosure, look around at what options there are. This includes having any foreclosure, or threat-to-foreclosure documents closely examined by an attorney. Your attorney may be able to gain a delay in the foreclosure process, alternatively, they’ll be able to help you work through the bankruptcy process without the risk of losing your home. Consumer protection legislation is there for your protection – an attorney will ensure you receive that protection.
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