Filing Bankruptcy on the Sheriff Sale Date to Stop Foreclosure Proceeding

April 13, 2010 - PRLog -- While there are many problems with bankruptcy, sometimes one may seem inevitable enough anyway to justify filing on the day of a home's sheriff sale to delay long enough to find a solution. Read on for some of the things a homeowner should consider before using this option to delay a foreclosure.

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


Make A Plan First

“…When using a bankruptcy to keep a home from selling at the sheriff sale, it is vital that a homeowner knows in advance exactly what they plan to do in order to keep the home permanently. As soon as the sale is stopped, the bank trying to sell the home will probably go to court to get permission to resume the house's sale. This can be avoided by working out a way to pay for the past due balance with the bank quickly and resuming paying on the mortgage. The bank may also be open to a mortgage modification or refinancing option to help the homeowner keep the home. Whatever the home's owner plans on doing, it is important to move quickly and with purpose to avoid loosing the home…”

Will Filing Stop Foreclosure?

Filing bankruptcy is a good way for someone who is experiencing a large amount of unpayable debt to at least temporarily stop a home's foreclosure proceedings. While it is not a permanent fix, it might be able to buy enough time to work out an agreement with the bank or apply for a modification that will keep the bank from acting until the application is approved or denied. While filing is a major financial step that should never be taken lightly, it can be an invaluable tool when a homeowner has a plan for attempting to keep a home. Without a plan and a way to resume at least partial payments when required, this tactic will only delay foreclosure until the bank gets the courts to allow the sale to resume.

“…When a family has exhausted all other reasonable options, claiming to be bankrupt is one of the only ways to stop the sheriff sale on a home at the last possible minute. While this is not a permanent solution, it may allow enough time to negotiate with the bank or apply for a loan modifcation…” added A. Lillo.

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