The Foreclosure Process After Bankruptcy
Does it make any sense to seek foreclosure proceedings after you have been successful in your bankruptcy case? Is this legal? What is the difference between foreclosing on your home before or after your bankruptcy case? What are the correct processes for doing this? There sure are a lot of questions regarding this matter. Yet all of them are good questions and deserve good answers. We are going to take a look at some of these answers right here in this article.
The thing you must understand up front is that; although bankruptcy is a viable way to stall for time from a pending foreclosure, it is only temporary. The only chance you have of permanently keeping your home is if you are somehow able to make up the missing mortgage payments. If you cannot; you must face the fact that you are going to lose the home. If you have not done so already; now would be a good time to hire a real estate lawyer who is an expert in this matter. He or she can possibly come up with some legal and realistic ways of at least buying you more time. You will need this lawyer anyhow to inform you of what the correct processes are for a foreclosure on your home following bankruptcy.
If foreclosure on your home is inevitable at this point, the first process will be to obtain something known in the profession as an automatic stay. What this will do is prevent your lenders from proceeding to collect the debt they are owed and TEMPORARILY delay the foreclosure. The catch is; if you stop your mortgage payments at any time after the automatic stay, the lender can legally file a motion to be relieved from that stay. It is then up to the discretion of this lender when to move forward with the foreclosure on your home.
Another part of this process is called a bankruptcy discharge. When this occurs the homeowner typically receives legal release from certain kinds of personal debt. The exact procedures differ depending on if it is a Chapter 7 or a Chapter 13 bankruptcy. Once more though, there is a catch to this action. This time the catch is that it is still the right of your mortgage lender to foreclose on your home if you fail to make the payments. This is another instance where your real estate lawyer can advise you of all of your rights. Additionally; he will let you know about all of the rights the mortgage lender has, as well as those of your other creditors.
There are other processes involved with this that your lawyer can tell you about. However, at this point it is time to face the facts. They are simple; if you cannot pay your mortgage for an extended period of time and make no provisions to catch up, you are going to lose your home. The lender is not deliberately being cruel. Even for a fairly understanding lender, there is usually nothing more he can do. Your best plan of action now is to make alternate living arrangements for yourself and anyone else in the home as soon as possible.