Can I Avoid The Foreclosure Process By Filing For Bankruptcy?

When considering filing for bankruptcy in order to stop the foreclosure process it's

important you first understand the risks involved in doing so.

The short answer to the question is that yes there are plenty of cases and situations in which a bankruptcy can stop or pause the foreclosure process. However, there is a chance that the actual foreclosure being stopped is only temporary as the bank will still have the ability to motion to have the actual loan removed from the bankruptcy. If this happens then the foreclosure is still going to take place and you're going to end up losing your home.

This means that if your goal is to save your home, you have other options to look into first asbankruptcy should be your absolute last resort to stop foreclosure. On the other hand a good foreclosure specialist could help in determining whether or not there is a valid defense to put up against the lender to stop the foreclosure process. If there is a valid defense that can be put up then this is a permanent solution, rather than a temporary one.

More times than not home owners start rushing into bankruptcy to avoid or stop the foreclosure process from proceeding rather than fight the foreclosure in court. So if the sole reason for searching for a bankruptcy is to save a home, then a foreclosure specialist should first be contacted before anything else.

A good foreclosure defense specialist will evaluate your case and determine if there is a defense that makes sense to fight against mortgage fraud, mortgage servicing issues, and securitizations fraud that many lenders have commit during the housing boom of the mid 2000's. Bankruptcy should be the last resort because there are hundreds of thousands of homes that end up being foreclosed on when there is no legal right of ownership to the property of the foreclosing party.

In a nutshell what that means is that many (hundreds) of lenders were eager to provide mortgage loans to buyers, but almost immediately they would bundle these loans up and sell them on the secondary market to trusts. These trusts would be a bundle of thousands of loans that became securitized.

When these loans were sold on the secondary market, often times the paperwork that was supposed to be filed, wasn't. Either that or it wasn't filed properly. In putting together a foreclosure defense to stop a home from being foreclosed on, it's in the securitization process that often the paperwork is not completed correctly, which is what a good specialist will find. If this is the case, then the lender/trust has no real legal ability to foreclose on a home. Putting a defense together will not only stop the foreclosure process, but often times the lenders will be found in a position of being forced to modify the mortgage for the home owner to terms that are favorable. Each and every case is different of course.

A good foreclosure defense is finding all the discrepencies in the foreclosing parties complaint, with what is actually on file. Many times a company will attempt to foreclose out of knowing that most people won't defend against the process. These banks only win due to the fact that the foreclosure goes unchallenged. The truth is though that with these loans being sold, and documents lost, that this is a great time to find a foreclosure specialist instead of looking into bankruptcy. A good foreclosure specialist is going to find the issues and help expose the foreclosing party.

by: BRoussey7656

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