A bankruptcy and a foreclosure traditionally go hand-in-hand. A bankruptcy is very rarely a complete whitewashing. At some point, the lenders will require repayment to some degree for past money owed. One of the greatest purchases one can make is their home, and this becomes a powerful bargaining tool in the completion of a bankruptcy and the pursuit of fairness and justice for all involved parties.
A real estate bankruptcy must be facilitated by a real estate attorney in Washington, Indiana. People who are uninformed about the process of bankruptcy in regards to their home could be intentionally swindled by a situation that takes advantage of their naivety. An attorney progresses through the bankruptcy with their client in mind.
For most people, it works as follows. A bankruptcy is declared to clear an individual or family of the majority of their past debt. The debt owed is usually substantial, so the home naturally becomes involved. A mortgage lender has a collateral claim on the property if there is an open mortgage. Their goal now is to get the property back at the most affordable price they can. The current value of the home can be extremely helpful. Mortgage lenders are seeking prompt repayment, and they are often willing to take a much lower price to get the property closed on and moved on with. The foreclosure process is initiated; if a property closes, it can be used as a bargaining tool to for push a better bankruptcy settlement.
In a bankruptcy, an attorney can file an automatic stay. It means that all the details noted above about the property are withheld until confirmation from the bankruptcy court is reached. The arrangement will allow a family to focus on the bankruptcy without the immediate pressure from the mortgage lenders. Lenders hate this, of course. But it is a legal action not well known to the public.
Visit the website to get some insight into the options and services of Feaval Law, a real estate attorney in Washington, Indiana. For more contact Jonathan or Andrew to set up a proper consultation.
