Okay, so you have purchased a house in San Diego and settled in with your family
. But, what about the loan amount that you have to pay back to the bank or lender? If you don't make preparations in advance to repay the loan amount, you might have to deal with the possibility of foreclosure.
If the foreclosure procedure starts, the bank or the lender will take the over the control of the property from you. You might be forced to vacate it. Filing for real estate bankruptcy can be of immense help to you in this situation. Real estate bankruptcy can be defined as a two party dispute between the mortgage lender and the borrower. In case you are not able to repay the loan on time, you can file for bankruptcy protection which will stall the foreclosure proceedings for some time.
The creditor can also appeal to the court to declare a bankruptcy case as null and void on the grounds of "bad faith." The creditor must prove that giving the debtor more time to repay the loan will be useless. The court will also study the case intricately to see if the charges of "bad faith" are indeed true.
There are several benefits of filing for real estate bankruptcy:
* You can stop creditors from hounding you constantly by getting an automatic stay that will prevent them from getting in touch with you.
* You can also stop court rulings against you. It often happens that a garnishment order is issued by the court to the employer of the debtor to withhold all or part of his wages. Filing for bankruptcy will protect you from this situation.
* It will remove the debts which are not secure which include credit card balance.
* You can protect assets like your retirement accounts.
* Prevent the issuing of 2nd mortgage on a property that has decreased in its market value.
* Under a few circumstances you can also stop the sale of your property.