Questions About Mortgages And Bankruptcy

: Reese Baker & Associates

  Filed under: Foreclosure

concernOwning a home is a big investment and, often, your biggest asset. When mortgage debt arises or you have had trouble with foreclosure, you may have some questions about how that is affected by bankruptcy. Here are some brief answers to some of the common questions about mortgages in Houston bankruptcy:

How Can I Stop A Foreclosure?

Filing for bankruptcy is one of the quickest solutions to stop an active or pending foreclosure. When you file for bankruptcy the court issues an automatic stay, halting all collection and foreclosure actions. In most cases, you can roll your missed payments into a Chapter 13 repayment plan to resolve your missed payments and stop the threat of foreclosure. In other cases, you may be eligible to keep your home through the Texas bankruptcy exemption laws.

What Can Be Done About Second Mortgages?

Filing for bankruptcy can strip away second mortgages and discharge other forms of debt, freeing up income for you to get back on track with your mortgage loan. In a Chapter 7 filing, you may be eligible to have your unsecured debts and that second mortgage eliminated in a matter of months. In a Chapter 13 filing, you could still have that second mortgage stripped away while you roll your remaining missed payments into a repayment plan that is spread out over a period of time.

Can I Get A Mortgage After A Bankruptcy?

Nothing about the bankruptcy process will hinder you from getting credit again in the future. In fact, most people find an improvement to their credit score after filing for bankruptcy. When high debt balances and delinquent account statuses are removed through bankruptcy you are likely to have a better chance at future in the credit. If you were to have lost your home to a foreclosure you could have a challenging time at another mortgage, but it is certainly not impossible. A good rule of thumbs is to take six or more months after a bankruptcy, and a year or more after a foreclosure, to work on your credit profile and rebuild yourself as a responsible borrower.