How To Stop Foreclosure After Filing Bankruptcy

Bankruptcy was created to give people a fresh start. Unfortunately, things do not always work out the way we want them to. For some people, bankruptcy helped with some debts, but they still have a difficult time paying their monthly mortgage payment and they face foreclosure. Their question is "how to stop foreclosure after filing bankruptcy?"

To a certain extent, options for stopping foreclosure or avoiding foreclosure fall into one of two categories.

First, there are the actions you can take to delay, avoid, or stop foreclosure and your mortgage lender either can't stop the actions or has a difficult time in stopping the actions. The main option in this category is bankruptcy, either Chapter 7 or Chapter 13. A home lender cannot stop a person from filing bankruptcy.

One draw back to bankruptcy is that once you have filed bankruptcy and received a discharge of certain debts, you cannot file bankruptcy again for several years. So, if you have filed bankruptcy and are facing foreclosure, you may not be able to stop foreclosure by filing bankruptcy. That leads us to the second category.

The second category of options involve working with your mortgage lender. These options include:

- One Time Relief. Some mortgage lenders will either delay the due date of a payment or even push the payment to the end of the mortgage payment period. I call this One Time Relief because a home lender will help you with this option only one time.

- Mortgage Modification. If you and your lender agree, your mortgage may be modified for a lower interest rate or a longer payment period. Either of these modifications will likely lower your monthly mortgage payments and make it easier for you to keep your house.

- Deed In Lieu of Foreclosure. If your situation is right and your home lender agrees, you may be able to convey your house to your lender in exchange for your lender satisfying and canceling your mortgage debt. The down side is that you lose your house with this option.

- Short Sale. If someone wants to buy your house, but is not willing to pay an amount large enough to pay off your mortgage, you can ask your mortgage lender to accept a lower payoff amount. This process is called a short sale. Again, with this option, you will lose your house.

As you can see, if you have filed bankruptcy and received a discharge of certain debts, your options to stop foreclosure or avoid foreclosure are very limited. You will very likely need to work with your mortgage lender. If your lender will not work with you, there is probably not much you can do in stopping or avoiding foreclosure.

This is general information only and not legal advice. If you need specific information or have any questions of any nature whatsoever, talk with a lawyer licensed in your state.

Stop! Don't blindly chase any option to stop foreclosure. See stop foreclosure options to learn what options you have in your situation. Remember, what works in one person's situation, may or may not work in your situation to stop, avoid, and prevent foreclosure.

For more general information, see Stop Foreclosure - Five Options You Need To Know. For more detailed information see bankruptcy.

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