We’re in tough times. If you didn’t already know that, it’s far past time to crawl out from under your rock. Many good people have had bad things happen to them, and have landed in a world of financial hurt. Many have lost jobs. Many have lost homes. Many have had to go as far as consulting a bankruptcy attorney to help them get out from under the mountains of debt which have crept up on them during these trying times.
One of the leading reasons why people go to see a bankruptcy attorney is because they find themselves still owing a ton of money even after the bank has foreclosed on their homes. If you find yourself in that position, bankruptcy is sometimes the only serious option you have.
Here’s how foreclosures work (you’d be surprised how many people really aren’t aware of this until after they go through it):
- After you default on your payments, your bank sends you several notices, eventually making it clear that they are foreclosing on your property.
- Your property goes up for sale by auction. The bank is often the highest bidder, and the price is usually significantly less than what you owe on the property.
- The buyer begins the eviction process if you are still living at the property.
- The amount the property sells for is deducted from what you still owe on the property.
- You are liable for the remainder of your mortgage, even though you are no longer able to live at the property. You are also liable for the legal costs incurred by the bank in many cases.
So, in the end, you not only can’t live in the house anymore, but in most cases, you will still owe a lot of money. And let’s face it: if you’re in bad enough financial space that your house went to foreclosure, you’re not exactly in a position to pay back the remainder of the mortgage while paying rent or a house payment somewhere else.
That’s where talking to a bankruptcy attorney can help. There are several different types of bankruptcy you can file for to help you get out from under the burden of your debts. In most cases, you can keep some of your debts and continue to pay on them while receiving relief from others.
While we would never suggest bankruptcy to anyone who doesn’t absolutely need to take that step, chances are that if you’ve had your home foreclosed on, you’re one of the ones who really should consider it.