Real Estate Foreclosure
Homeowners facing the loss of their homes by foreclosure may want to borrow a legal maneuver from the corporate community. Debt-ridden homeowners can take shelter in the federal laws. Popularly known as Chapter 11, bankruptcy is a tricky legal proceeding in which the assets of a corporation, either unable or unwilling to pay its debts, are allocated by the court to satisfy the claims of its creditors.
While the tactic may not prevent the lender from eventually taking a house away from a borrower who is woefully behind in his mortgage payments, personal bankruptcy, when used properly, can at least buy the owner some time to either work out his financial difficulties or sell his house on his own.
For once bankruptcy is declared, no creditor may take action against the debtor outside of the bankruptcy court.
There are also other ways to avoid and delay foreclosure and we will try to cover them all.