Home Sale Relief

This article explains a bit about the practice of filing chapter 13 stop foreclosure. If you file a chapter 13 bankruptcy petition, you can then let your creditors know and they will immediately leave you alone.

However, your mortgage lender holds a note secured by a deed of trust or mortgage in your house. They are a secured creditor. Secured creditors are not really affected by a bankruptcy filing.

They will stop trying to foreclose. But only for awhile. The fees and costs will continue to mount up. They will go to court and get the “automatic stay” lifted. Now you have a bankruptcy filing on your credit report, and you still may face the loss of your house.

I do encourage you to consult a lawyer and do what the lawyer suggests, after you satisfy yourself by having your questions answered and doing your research. But I also suggest you treat a filing for chapter 13 very carefully.

What many people don’t know, is that chapter 13 requires them to pay back their creditors, often over a four year period. If you miss a payment you could be in trouble. You are going to live your financial life under court supervision for 48 full months. Many chapter 13s fail. So the person who files still has this bankruptcy on their credit, and they end up with not much to show for it.

I strongly urge you to consider other options. Please see http://www.MortgageReliefFormula.com and specifically this information about your mortgage and bankruptcy.