Here at LegalSpecs.com you can locate US attorneys by State or by Area Of Practice. In addition you can browse through our endless library of legal and law related articles or look up a legal word or definition.
Real Estate Finance Problems – Go BK or Foreclosure Route?
07 Apr 2008
America is the land of second chances. If you have financial problems, you might be wondering which the better option for you - bankruptcy or foreclosure?
Bankruptcy has been around for a long time. It was the answer to the question of what happens to someone with immense debts. Whereas people were previously imprisoned in debtors' prisons, bankruptcy was based on the idea of modifying or eliminating debts to give people a new start.
Foreclosures, in contrast, have long been viewed as a remedy for a lender, not homeowner. A foreclosure is not about giving a person a second chance. It is about a lender taking back a home that a person has failed to make loan payments on. There is no redeeming element to the foreclosure for the person in question. It is just a disaster.
So, which is route should you go with real estate problems? Well, both are damaging to you. That being said, bankruptcy is probably going to be viewed in a worse light. Why? Bankruptcies typically are filed where you've made a complete habberdash of your finances, not just run into problems with paying a mortgage. Thus, it is seen as a more comprehensive failure on your part and lenders are going to be very hesitant to loan money to you.
There is a second reason foreclosure is more favorable than bankruptcy. It is no secret great swaths of homeowners are in dire financial situations. Millions will end up in foreclosure. These millions, however, are also future homeowners. Once the current mortgage mess and credit crunch cleans up, it is believed that a solution will be created for these foreclosed individuals to borrow again in the future.
If you are facing foreclosure, you have a better option than bankruptcy. Contact your lender and see if they will allow you to do a short sale. Lenders really do not want to own homes, so they will give out forbearance and short sale options like candy. A short sale can hurt your credit, but nothing like a bankruptcy or foreclosure.
Aazdak Alisimo writes about bankruptcy issues for BankruptcyAttorneysandLawyers.com where you can find bankruptcy lawyers near you and across the country.
Please remember that no information found at this site can replace a face to face meeting or telephone consultation with a "real live" attorney about your particular case, problem or question. The information you find here or in the answers should just be a starting point in finding your answers.
Recent Legal Articles
How to get an accident claim!!!
We face accidents everyday – with us or with our near about. When we face an accident we simply forget the fact that the person, who is...
General Liability In Accidents Involving Children
General liability rules vary from state to state when minors are involved, but they do tend to give children the same basic rights. This is ...
Divorces By Jurisdiction
Around the world, aside from the Philippines and Malta, divorce has become the widest means of ending a marriage aside from annulment. In ma...
Small Business Sense
Small Business Sense: Someone Sued Me…Now What????
We live in a very litigious society. Anyone can file a la...
Views are Spectacular Off the Beaten Path
When I was practicing law, my colleagues would talk about how lucky they were to put their kids through college or. "I don't know how we did...
Recent Dictionary entries
pit fossa. A hole dug in the earth, which was filled with water, and in which women thieves were drowne...
asylum A place, of refuge where debtors and criminalsfled forsafety. 2. At one time, in Europe, churches a...
patent, prussian This subject will be considered by taking a view of the persons who may obtain patents; the nature...
decorum Proper behaviour, good order.2. Decorum is requisite in public places, in order to permit all perso...
seller, contracts. One who disposes of a thing in consideration of money; a vendor. 2. This term i...