Is Bankruptcy a "solution" to Foreclosure?
Except for extraordinary short window situations the answer is a
resounding “No.” For the most part bankruptcy in the face of
approaching foreclosure is quite possibly the worst thing you could do.
Ask anyone who has tried this (har-har) remedy.
It’s a brief stay of execution then you and your spouse sign what amounts
to “a pact with the Devil.”
· Your rate does not go down; it all likelihood it quickly escalates.
· It’s virtually guaranteed that you will sign away all rights to
pursue any future remedies for fraud on the deal you just “solved”
with a bankruptcy.
· Your credit is permanently ruined.
· There will likely be a balloon settlement to kick off your new
status as a bankrupt homeowner.
· Your monthly payments increase.
· More legal fees for bankruptcy.
Did I miss anything? Don’t do it folks unless you love the house you are
in and have a terminally ill wealthy relative who will leave you a bundle in
60-90 days. Other than that it is the most dreadful thing you could ever do.
Mr Ed / email@example.com / 972-596-4363