The home foreclosure process can be confusing and unsettling. The timeline and options for keeping a home can be hard to understand and may leave homeowners feeling helpless and overwhelmed. Understanding how the bankruptcy process can affect a Florida home foreclosure is the first step to keeping a home or knowing what to expect.
Once the bankruptcy papers have been filed, creditors are informed right away. All collection attempts must stop immediately. This can mean a home scheduled for a foreclosure sale can be saved for a little more time. The postponing of a sale may last around three to four months. However, there is no guarantee of that timeline.
If Chapter 13 debt reorganization plan is approved by the Bankruptcy Court, it is important to understand how past due payments on a mortgage are affected. The repayment plan may give you leeway, but you also have to pay back the late payments plus stay current with the new payment plan. Keeping payments current can help you keep your home while you focus on regaining financial independence.
Home foreclosure can be devastating and can result in a great deal of uncertainty for Florida homeowners struggling to sort out their financial difficulties. However, if you consult with a bankruptcy attorney about the various options and how bankruptcy in general may impact a home foreclosure, you may feel better prepared to move forward. Being clear about the fate of a home and how to avoid home foreclosure while filing for bankruptcy can be a viable option for Florida residents.
Source: bankruptcy.findlaw.com, “Facing Foreclosure? How Bankruptcy Can Help“, , Sept. 3, 2014