Foreclosure may be looming in your future, but there are other options open for you to consider.
For those who do not understand what foreclosure means, it refers to a local government taking away your ownership to a piece of property. For example, let’s say you take out a loan to buy a house, as most Americans do, and during the course of signing the papers, you have given the lending institution a secured interest in your home. If you do not make your mortgage payments, or do not make them on time, the lender can, because they have a secured interest in your home, foreclose on it or auction it off.
Proceeds from the auction go back to the lending institution, but that is not the end of things. If the lender is not able to recover the remaining money you owe, you may have a deficiency judgment registered against you. Of course, if you find yourself in this kind of a situation, you definitely have way too much debt and may wish to consider filing for bankruptcy protection.
It does not matter how you got to where you are in terms of being about to lose your house. There are millions of people in similar circumstances, brought down and getting behind by a marriage gone bad, unemployment, medical bills or bad money management skills. In other words, life happens. It is far more common that you may think to find out that you have somehow overspent, even though you thought you had all your bases covered. You didn’t and you find foreclosure looming large any day now. Time to make some major decisions.
Foreclosure may sound like an easy and quickie solution to having too much debt. While it will solve “that” problem, the problem you will have for your credit history is pretty large and difficult to overcome. Foreclosure and a deficiency judgment can make you look like a very poor credit risk, even though you may have gotten in over your head unintentionally.
Good news. Foreclosure is not always inevitable, and you do have other options you may consider. First things first though, do you understand the ramifications of your situation? Meaning, is this a short term problem you may be able to recover from? Are the mortgage payments something you just can’t handle – period? If your financial difficulties are short term, you can fend off foreclosure by perhaps borrowing from a good friend or relative; taking the bull by the horns and talking to your lender in a forthright manner; refinancing your loan and yes, even selling your house.
The bottom line is, if you do not know what to do, do not know if you are at rock bottom and do not know what options are out there for you, then contact an experienced Ohio bankruptcy lawyer. If you want help, trusted advice and guidance through the bankruptcy process, your Ohio bankruptcy lawyer is able to take care of you.