Sometimes, our best intentions work out all wrong. We are taught to prepare for the unexpected, but when you really think about it, how are we supposed to do that. It does not make any sense. Refinancing homes in bankruptcy means that very well intended people have not prepared very well. Homeowners being unfortunate enough to need the following information may be relieved to find that bankruptcy does not automatically mean losing your house.
The current recessions has not be confined to one nation, but has instead proved to be a global problem. The subprime mortgage industry has come under a lot of scrutiny, and as a consequence been very limited. Credit challenged people have had to look harder and harder for lenders that are able to assist them in any way. Programs to help homeowners in these situations are still out there.
Realizing that bankruptcy is necessary is a blow to anyone. If you are a homeowner in this situation the fear of losing your house in the process can be overwhelming. This is not always the case. Whether you try to refinance before or after filing for bankruptcy does change the situation and you will want to consult your attorney about this. Refinancing after the bankruptcy opens up more conventional solutions. If waiting is not possible, other solutions are present.
Staying out of foreclosure is a possibility when you are filing for bankruptcy. This does not translate to all options let you stay in your house. Selling your home might be necessary.
You are going to want to find the solution with the best possible outcome for you. A foreclosure can damage your credit on top of a bankruptcy. If you are certain that foreclosure is on the horizon, then it is be wise to call a real estate agent and try to sell the house before a foreclosure can happen.
To make things easier, remember to get your lender on board. In the worst of cases they may recommend for a short sale. A short sale is when, in the interest of time, a piece of real estate is sold for a loss. Lenders do not enjoy foreclosure either, as they also loose money in the process. Foreclosure is bad for their business too.
In situations where making the monthly payments is not a problem, but the past due amount is a barrier, a lender can do a note modification. This means that the past due amount can be reduced or forgiven altogether. Monthly payments may also be modified. Then you are able to keep your home as long as the current payments are made.
Losing a house is never the best option. However it is sometimes the only option. This is a dire and stressful circumstance to be caught it and it is unfortunate that some people have to experience it. Note modification, repayment plans and other options do exist. Refinancing homes in bankruptcy is possible to do, but you need to do some research and maintain an open line of communication with your lender.