Bankruptcy
Many have considered and marketed bankruptcy as a ‘foreclosure solution,’ but this is only true in some states and situations. If the homeowner has non-mortgage debts that cause a shortfall of paying their mortgage payments and a personal bankruptcy will eliminate these debts, this may be a viable solution. Consult with a professional like Imperial before you proceed on this path.
Benefits
Does not require lender approval
Drawbacks
If a homeowner cannot afford their mortgage payment, a bankruptcy will only stall (not stop) the foreclosure process. Bankruptcy can be costly, is damaging to credit scores, and can only be declared once every seven years.
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