If you are having difficulty continuing with your mortgage obligations, you may have received threats of foreclosure from your bank. It is important that you take these warnings very seriously, because if you do not take further action, you may lose your home and face other negative implications such as damage to your credit score.
Many people want to prevent foreclosure but become confused about the best way to do it. It’s common for people to assume that the best way to avoid foreclosure is to file for bankruptcy. While this can be a good strategy in some situations, bankruptcy is not always the best form of foreclosure defense.
Why is bankruptcy not always the best foreclosure defense?
Bankruptcy is quite a drastic action to take because it can take months or even years to complete, depending on the bankruptcy type. While bankruptcy is generally effective at helping debtors to keep their home if they want to, it’s most appropriate for people who are suffering from overwhelming debts, not just a difficulty in paying their mortgage.
What are alternative forms of foreclosure defense?
If you are experiencing temporary financial difficulties due to the loss of your job or because of unexpected medical bills, you may be able to prevent foreclosure by asking for a modification of your mortgage. You may be able to temporarily halt your payment obligations, or use the equity in your home to alter the mortgage.
If you want to make sure that you do not lose your home to foreclosure, it is important that you understand the legal options available to you.