There is a place for bankruptcy in stopping foreclosure according to many foreclosure experts
Finding good foreclosure solutions is best for everyone and bankruptcy has a place. Bank foreclosures on homes are extremely costly to both the borrower and lender. To be blunt, lenders are in the business to make money and not use to peddling real estate, so they are likely to look for the easy way out of a default situation on a home.
If the bankers see that the foreclosure process is not going easy because the homeowner is fighting the foreclosure with bankruptcy and law suits, counterclaims and complaints of various sorts, the banker will be more likely to eventually want to negotiate fairly with the homeowner/borrower and settle the matter in the homeowner’s and/or borrower’s favor.
Bankruptcy is one of the dilatory foreclosure solutions or tactics that does stop everything for a while, and it buys you a little more time to develop a more permanent solution. Multiple bankruptcies have been used to delay foreclosure for years by some.
Unless you are one of the bankruptcy foreclosure experts within a few months to a year or so, depending on the banker’s counter measures, the end result of bankruptcy is almost always that the property is still sold at auction and of course you also now have a bankruptcy on you credit report as well as a foreclosure.
However, if you need a few weeks or months to develop good long lasting foreclosure solutions to stop your foreclosure filing bankruptcy initially may be the way to go. Then once you have gained the time from filing bankruptcy to have one of the foreclosure experts put together a good case for you to fight and probably beat the bank in court you can file your case before or after the bank obtains a release of your home from the bankruptcy in the bankruptcy court.
