Bankruptcy In Dallas
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Bankruptcy In Dallas
Alternative To Avoid Foreclosure
Bankruptcy in Dallas TX is a common strategy to stop foreclosure temporarily. A home cannot be sold, foreclosed or auctioned while in bankruptcy (Ch 7 & 13). The best way to temporarily stop a foreclosure even the day before an auction may be to declare bankruptcy in Dallas TX.
Sometimes when a homeowner is behind on a loan payments and is facing foreclosure, they will declare BK. When this happens, the lender will file a motion with the bankruptcy in Dallas court to have the bankruptcy stay on the home lifted. At this point the stay is lifted and the home goes back into foreclosure and to auction. Thus, bankruptcy in Dallas can be an effective, although only temporary delay of a foreclosure.
Click on the link for a complete Law Summary of Foreclosure in Texas or go to Texas Legislation Online
Pros and Cons Of Filing For Bankruptcy
The advantage of declaring bankruptcy is that it can be done at the last minute just before the home is actually auctioned off by the lender. Once the bankruptcy is declared, the auction is stopped until the lender stay lifted.
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The disadvantage of declaring bankruptcy is that the vast majority of homeowners that declare bankruptcy to stop a foreclosure end up getting a bankruptcy AND a foreclosure on their credit. This is because a bankruptcy only DELAYS the foreclosure, and does not prevent it. Also, fees and missed payments pile up during bankruptcy making foreclosure more likely and less preventable.
If a homeowner’s financial problems can be mostly resolved by selling their home, a short sale or other options for the seller are much better than a bankruptcy Unfortunately – a bankruptcy attorney will rarely tell clients this! Most homeowners that consult only a bankruptcy attorney when looking for solutions to avoid foreclosure will end up concluding they have only one option – declaring bankruptcy and getting a foreclosure even though both might have been avoided. Bankruptcy is a big decision. Before exploring this option, make sure you talk to a creative real estate investing professional about all of your options! Regardless of your situation, income, or equity, if you would like to discuss all of your options for selling your home quickly to avoid foreclosure, contact us.
More about Loan Modification
In a typical scenario, a homeowner will hire an expert to negotiate the loan modification. Please carefully research any company that offers this service for a fee. Usually the homeowner will be told to stop making payments during the negotiation. At this point the lender will tell the homeowner that a modification is being considered. Unfortunately, most of the time the modification is ultimately denied (just before a foreclosure) and the homeowner is not able to make up all of the late payments and significant interest, penalties, and legal fees, and thus the result is a foreclosure.
The types of modifications that have a higher success rate involve converting an adjustable rate loan to a fixed rate loan or pushing out the interest rate adjustment for a couple of years. The types of modifications that have a lower success rate involve reducing the principal balance on the loan. Because many homes are so far underwater that a workable loan modification are usually not achieved.
Loan Modifications rarely work. A LM, is an option for you to keep your house, if it is denied and you need to sell your house as-is, we can make you a fair offer following the 5 steps process to buy houses, so you can start fresh, with no debt, and if possible, with money in your pocket.
Bankruptcy in Dallas Is An Alternative…
Remember that Bankruptcy, is an alternative for you to keep your house. If it is inevitable to keep your home or if you decide to sell your house as-is is a better option for you, we can evaluate your house and make you a fair offer with our 5 steps process to buy a house, so you can start over again fresh, without a debt and when possible, with money in your pocket.
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Related Alternatives To Avoid Foreclosure
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