Several years ago, I knew someone who had the choice of allowing their home to go through a foreclosure process, or filing for bankruptcy to save the home from foreclosure. The homeowner had attempted to negotiate with the mortgage company, with no success. The homeowner then tried to get refinancing for the property to get out of the current loan. Because of the state of the homeowner’s credit, the refinancing was not obtained. After many weeks of trying to find other solutions, the homeowner thought that in order to save the home, filing bankruptcy was the only answer. Sometimes, all other ways of saving a property from foreclosure are exhausted, and only one other option is left; bankruptcy.

There are two types of personal bankruptcy available: Chapter 7 and Chapter 13. Keep in mind that if filing for bankruptcy is being considered, either chapter could have an upfront cost between $1000 and $5000. Once the filing has occurred, however, the foreclosure action is usually halted until a bankruptcy judge can rule on the case.

Chapter 7 bankruptcy erases all debts, including your current mortgage and any other loans you may have listed in your file. The drawback of erasing your mortgage is that it does not stop your lender from putting a lien on your house and foreclosing on the property. This means you can be out on the street without a house within weeks depending on your state’s foreclosure laws. Before filing Chapter 7 bankruptcy, confirm what your state laws are for real estate property ownership to see if this type of filing is right for you.

Full Article

For More Information:http://www.floridalawattorney.com

If you live in the Phoenix Arizona area and are selling your home, you may want to discuss the possiblity of a short sale with a reputable realtor. Of course there are good points and bad points to nearly any type of transaction you choose, but you may find that this option is very beneficial to you and your family. This article will explain a little more in-depth, so that you better understand how this works.

No one likes to go through foreclosure. It destroys your credit and can make you feel embarrassed. In many instances, you will not be eligible to purchase another home for five years, which means you will have to rent. Short sales are not the perfect solution if your mortgage is pulling you under, but it is certainly better than the alternative in many situations. Here are a few of the advantages of this option:

Benefits of Short Sales:

As mentioned before, you won’t have to face the embarrassment of being in foreclosure. You can maintain your dignity, knowing that you sold your home. You will no longer have mortgage payments to make, unless you choose to do so. Under Fannie Mae guidelines, you will most likely be able to purchase another home in only two years, instead of having to wait for five. Additionally, if your credit report shows no late payments past a 60 day time period, you may be eligible to purchase another home immediately.

Full Article

For More Information:http://www.floridalawattorney.com