Does Bankruptcy Stop The Foreclosure Proceeding?

April 13, 2010 - PRLog -- When people can no longer continue to make mortgage payments, it is very hard for them to save their house. While there may be some other options, many people consider filing bankruptcy to avoid foreclosure. This is an option that has some advantages, and depending on your situation may be a good choice.

Aurora Lillo Editor of the "Loan Modification Foreclosure" website -- http://www.LoanModificationForeclosures.com -- pointed out;


“…While filing a BK petition can stop the proceedings against you losing your home, it is not a solution that will last forever. Filing a Chapter 7 can relieve you of any past due payments on your mortgage as well as help you start from scratch. It will be like restarting your payments all over again without having to make up for past due payments. A Chapter 13 plan may or may not include arrearages, as a repayment plan will be worked out with the lender, which may even result in a better interest rate. This also means that the foreclosure process will be stopped and you can stay in your home…”

The thing to keep in mind about filing bankruptcy to avoid losing your home is that once the bankruptcy has been discharged, you will have to start making payments on the loan again. Filing is not something that is going to take your mortgage debt away forever. It will relieve you of the responsibility of any past due payments, and it will allow you to stay in your home, but you will still need to continue paying for your home to be able to live in it.

This is why filing can be a viable solution to avoid losing a home for some, and not as viable for others. Those who can see themselves in a position to make payments in the future may benefit from filing to avoid getting foreclosed on. Those whose situation isn't likely to improve and will likely only fall behind on payments and possibly face losing their home again may want to consider other options.

“…Whether it's a Chapter 7 or Chapter 13, you may be able to avoid foreclosure, but knowing your responsibilities after the bankruptcy is discharged is an important thing to consider to figure out if this might be the proper solution for you. For help in this matter you may want to consider help from a stop foreclosure service…” added A. Lillo.

Further information about how to get professional assistance with a mortgage loan modification by http://www.LoanModificationForeclosures.com