California Debt Relief Attorney

The Law Offices of New Horizon & Associates, LLP

As you and your bankruptcy lawyer evaluate your options in a Chapter 13 bankruptcy, you may decide you are better off without the house. How can you avoid foreclosure? Talk to a bankruptcy attorney at The Law Offices of New Horizon, LLP.  about a short sale or a deed in lieu of foreclosure.

Call (877)306-6343 for a free consultation with a foreclosure attorney.

Sometimes, even after examining the numbers every way possible, the end result keeps being the same: You cannot afford to keep your home even with the help of Chapter 13 bankruptcy. If your income is drastically reduced or if your mortgage is one debt too many in a Chapter 13 reorganization, what are your options?

You can take action to avoid having a foreclosure on your credit report.

A short sale may make sense in your case. Can you find a buyer ready to buy your home but for less than you owe on your mortgage? Both you and the bank are aware that your home may be worth less than when you bought it. If the bank approves (and you must have their approval), you may be able to arrange a short sale that satisfies your mortgage obligation.

You may also consider a deed in lieu of foreclosure. That means you can give up all claim to the house and hand the deed to the mortgage holder. The bank may not want the property, but it may be the best option for both you and the bank.

Whatever you decide to do, do not make a final decision or sign papers for a short sale or a deed in lieu of foreclosure until you have reviewed your decision and all documents with an experienced debt relief attorney.

Call (877)306-6343 for a free consultation with a debt relief attorney!