When an individual or family sits down to consider bankruptcy as an option to stop a financial downward spiral, that individual or family may not be fully aware of how a bankruptcy filing will impact the home foreclosure process. The thought of home foreclosure under any circumstances can be a frightening prospect, but this prospect can often be avoided by filing for bankruptcy. It is important for Florida residents considering bankruptcy to understand the how bankruptcy filings affect home foreclosures.
A notice of foreclosure can strike fear in the heart of any home owner. For many in Florida, the crush of home foreclosure actions that came as a result of the recession meant many homeowners found it impossible keep a roof over their heads. However, for some Florida homeowners, that crush has meant the statute of limitations has run out, and some may be able to stay in homes for which they quit paying the mortgage.
The onset of the housing crisis in the United States produced a record number of home foreclosures just years after homeownership numbers hit an all-time high. Florida was hit particularly hard when the housing crisis struck, and many homeowners were faced with home foreclosures and bankruptcy. Despite the bleak outlook over the last few years, home foreclosure numbers are looking better as more people seem to be getting back on stable financial footing.
There may be nothing more frightening for a family than being unsure if it can catch up on a mortgage or if permanent action to save the home is needed. One option that more and more people have turned to recently is a loan modification. While a loan modification may be a tempting and helpful resource for some Florida homeowners, others may want to pursue other options or at least fully understand what other options may be available given their financial situation.
The home foreclosure process is very detailed and can be a lengthy legal process. After the backlog within the court system in Florida and elsewhere created by the recession, the home foreclosure process went past the statute of limitations for some. The banks' failure to initiate a home foreclosure proceeding or finish the process in the allotted amount of time has led to a unique legal conundrum as some homeowners are still in homes they have not paid toward in years.
The thought of going through the home foreclosure process can be stressful and even frightening for some homeowners. It may behoove some Florida homeowners to investigate how filing for bankruptcy may act as a means to stop a home foreclosure action against them. Different types of bankruptcy can impact a pending home foreclosure situation.
One of the main reasons people pursue filing for bankruptcy is to gain control over a financial situation which they have been unable to control on their own. Part of the financial struggle for many individuals involves keeping up with a mortgage payment. It is not unusual for people on the verge of filing bankruptcy to also simultaneously be in the middle of the home foreclosure process. Before a Florida homeowner begins the bankruptcy process, he or she should be aware of how it may affect home foreclosure proceedings, now and in the long-term.
For those who are struggling with making monthly mortgage payments, understanding the options and consequences of those options is imperative. One option for those who want to keep their Florida home is to obtain a loan modification. However, this leaves a homeowner at the mercy of the bank and can be a time consuming process. For others, bankruptcy may be the best way to get finances in order.
The thought of losing your home is likely overwhelming and extremely distressing. Facing foreclosure can lead some people to fall prey to scams or believe inaccurate information. Any kind of misinformation about the home foreclosure process can lead to the possibility of losing your home even when there are other options available. Instead of fearing the process or following bad advice, Florida homeowners need to understand the facts so that they can make the best decisions for their families.
The threat of home foreclosure can be terrifying as you struggle to keep up with payments or look for ways to keep a roof over your family's heads. With the housing crisis and recession, simply selling a home that is unaffordable is not always a feasible plan, as many Florida homes may still not be worth the amount owed on an existing mortgage. One option for avoiding home foreclosure is bankruptcy. However, it is vital to understand which type may work best if the intent is to keep your house.