During time of financial difficulties you have to prioritize what to pay first. Naturally food tops the list as you can’t give it up, then come perhaps the utility bills as no one wants to end up without water or electricity and we kind of postpone the mortgage instalment. Just for a couple of days, then 1-2 weeks, which unnoticeably become a month. You are still fine but all of a sudden you get a letter from your bank – you are served with a foreclosure due to failure to pay and you realize it has been a couple of months already and the home you took for granted might be lost to the bank. Don’t panic but search professional help and find a reliable foreclosure attorney who can help you out of the situation. The attorney will analyze your personal situation and will give you proper advice what you should do. There are basically two options in such a case – to save your home or to surrender it. Below you will find a few facts why it is better to choose one over the other.
Save your home
The decision to keep your home is usually an emotional one, however it should be more financially-based. Review it as a deal and put down pros and cons of keeping the home. If it meets all your family needs, the interest rate you need to pay is reasonable and the property is worth more than the mortgage then you should fight for it. How does the procedure go? When you are served with a foreclosure letter you have 20 days to take the relevant action. In the event that you want to save your home, you should file for a Chapter 13 bankruptcy. This will allow you to catch up with the payments. An important note to observe is that the sooner you file the Chapter 13, the more affordable the payments will be and you will also save from piling up of attorney fees and charges. A good foreclosure attorney will prepare all the necessary paperwork and will also counsel you on how to proceed after the bankruptcy is filed. The process is not that complicated though it might sound a bit of unpleasant, however it is the best way to save your family home in such cases.
Surrender your home
As already mentioned the decision to keep or surrender the property must be financially based and void of feelings, if possible. Keeping the home is either a good deal or not. If the mortgage you have to pay is much hire than the property itself then it is best not to fight for it. In such case the step to take is file a Chapter 7 bankruptcy just before selling the house. This will not only ensure that there is no deficiency balance to pay back after the sale but will also give you additional six months in the property, so that you can get ready to move out.
There are times in life when we are faced with the tough decision whether we shall keep fighting for something or just make a step forward. If you are faced with a foreclosure, then you are in one such situation. But don’t waste time feeling sorry for what happened, find a good foreclosure attorney and follow their advice to save or surrender your home and resume your life.