If you did not keep up with every term and condition of the mortgage contract then the creditor can go ahead and file suit against you. They will initiate the foreclosure process.
So what is bank foreclosure? It is the legal process where the creditor repossesses a borrower’s home and then proceeds to sell it.
The money or income gathered from the sale is then used by the creditor to pay off all or a part of the outstanding debt that the borrower owes them. It is a pretty ruthless legal process which can leave you and your family without a roof over your head.
This has happened before, not just in the movies or some TV show. USAttorneys.com, this website, was built for strenuous times just like this though. We have a legal counselor just for you. Legal help is right around the digital corner.
So what can you do about foreclosure?
However, what most people miss out on is that even in such a seemingly hopeless situation, there is hope. You do have some effective legal options that you can utilize in order to avoid or stop the process of foreclosure and keep ownership of your house.
Filing for bankruptcy is one such option. There are several different types of bankruptcies which serve different purposes of course. The most common types are as follows:
- Chapter 7 bankruptcy
- Chapter 13 bankruptcy
- Chapter 11 bankruptcy
- Chapter 12 bankruptcy
Chapter 11 and Chapter 12 bankruptcies are meant for small companies that have hit a rough spot financially and for fishermen and farmers that have been overburdened by insurmountable loans respectively.
However, Chapter 7 and Chapter 13 bankruptcies are more relevant and should be of more interest to you unless you fall under one of the aforementioned categories.
