After Foreclosure, What's Next?

Maybe the most painful part of a foreclosure is not losing your house

, but losing your house and finding out that you are still in debt. A foreclosure does not simply mean that you no longer owe anything on your mortgage. You might still owe the bank money!

Unfortunately, many people are unable to get protection from foreclosure. Despite all the talk from the government about modifying the loan, most loan modification applications have been turned down by the major mortgage lenders. In fact, one of the largest mortgage lenders has turned down 96% of requests. It goes without saying, homeowners in debt are in trouble and have few options to help them.

Even if you get past the emotional distress of losing your home in foreclosure!), the financial burdens might not yet be over. Many people mistakenly think that they won't have any mortgage debt after their house sells in foreclosure. However, it's not that simple. If the home sells for a lower amount than you owe on your mortgage, you still owe whatever the rest of your mortgage balance. This balance, the difference between the value of the mortgage and the selling price, is called a deficiency.

With the recession, more people than ever have a deficiency after a foreclosure. The poor housing market has caused a large decrease in home prices. If you bought your home for $100,000 in 2005 with a mortgage, but now your home is only worth $80,000, then chances are that your mortgage balance is greater than the value of your home.

Lenders won't simply forgive deficiencies or let them go, either. Lenders will try everything they can to recover the balance including garnishing your paycheck, threatening your car or home, or going after what you have in the bank.

Even though you might be drowning in debt, it is not with out hope. There are still other ways to get out of debt. A Chapter 7 bankruptcy can eliminate your deficiency balance and other "unsecured" debtslike credit cards, medical bills, and payday loans. After your debt is eliminated, you will no longer face the burdens of creditor calls, wage garnishment, and threats to your property.

You owe it to yourself and your family to give Chapter 7 a look. Find free information like bankruptcy FAQ, articles, blogs, and even free publications from reputable bankruptcy attorneys in your area. Remember, many attorneys will offer you a free consultation but the best ones will give you free information before you set foot in an office.

by: Jim Brown

POST COMMENT

Culver City Foreclosures|search For The Best Ones What To Look For In Foreclosure Listings Understanding The Basics Of Foreclosure How You Can Benefit From Fannie Mae Foreclosures? Benefits of Making use of Atlanta Foreclosure Listings Richmond Foreclosure Listings and Why to Make Use of Them Why to Make Use of Detroit Foreclosure Listings and Benefits of Detroit Got The Foreclosure Notice??? Now What? Culver City Foreclosures|what You Want To Understand 23 7 Ways to Avoid Foreclosure Avoid Foreclosure Now Is The Foreclosure Crisis In San Diego Leveling Off? Foreclosure Listings, Get List your Foreclosure Property