Bankruptcy Foreclosures
Unfortunately there comes a time that if you gone to far into the foreclosure process then getting back out could be nearly impossible. In these situations you will need to look to the legal system and use bankruptcy to slow the foreclosure down. These may be tough to take for a lot of people but keep in mind it is either this or you will find yourself out on the streets.
There are two types of bankruptcy that applies in these situations. The first is Chapter 7. This is when the courts come in and seize your assets so they can pay off your debts. You want to avoid this one at all costs. The other type is Chapter 13. In this type you are able to keep you home and work out a repayment plan with the lender. You won't be left with a lot of spending money but you will be able to pay off your debts.
Chapter 7 bankruptcies are for unsecured debt. You cannot put your house into this since the mortgage is secured by the property itself. This means things like credit cards will be taken care of by this type of bankruptcy. If you have managed to get into the situation where credit cards are eating up all of your money and making it impossible to meet your obligations to your mortgage lender then this type of bankruptcy can help in freeing up your finances to pay that obligation.
Chapter 13 bankruptcies are different from Chapter 7 since you can include your house in the bankruptcy. Chapter 13 bankruptcies reorganize your debt with a payment plan that is setup by the courts. With this kind of bankruptcy the amount of debt that is in default will be added to your monthly mortgage payment. If you fall behind again then your house will once again go back into foreclosure. Remember bankruptcy doesn't stop foreclosure. It is actually a process where you will be given time to pay back the payments that you have fallen behind on. If you fall behind again then the protection of the courts will be lifted and the process of foreclosure will once again proceed.
Before deciding to go the route of a bankruptcy make sure to consult with a bankruptcy lawyer. This is a decision to not be taken lightly. But if it is either bankruptcy or losing your house and ending up in the street then you should definitely given it serious consideration.
As painful as bankruptcies are they represent opportunities to other families. Keep in mind that these other families have had nothing to do with the current situation and there isn't any reason why they shouldn't benefit from the bank foreclosures.