Bankruptcy To Avoid Foreclosure

The best way to temporarily stop a foreclosure in Mesquite TX  (up to) the day before an auction (and when a homeowner has unsustainable debt beyond the home mortgage) may be to declare bankruptcy. Bankruptcy is another common strategy to avoid foreclosure temporarily. A home in Mesquite TX cannot be sold or foreclosed on (auctioned) while in bankruptcy (Ch 7 & 13).

Sometimes when a Mesquite homeowner is behind on loan payments and is facing foreclosure, they will declare bankruptcy. When this happens, the lender will file a motion with the bankruptcy 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 can be an effective, although only temporary delay of a foreclosure.

Advantages and Disadvantages

The advantage of declaring bankruptcy in Mesquite TX, 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 or nullified until the lender stay lifted.

The disadvantage of declaring bankruptcy is that the majority of Mesquite 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.

Bankruptcy if facing foreclosure in Mesquite

Sell Property Now

    Unfortunately – a bankruptcy attorney in Mesquite TX 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 such as Dallas Houses For Cash 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, please CLICK HERE