People who have been struggling with finances often are worried about losing their assets like a car or home to foreclosure. This is primarily because of the various myths associated with the foreclosure. According to Dallas based bankruptcy law firm Recovery Law Group, separating fact from fiction can be quite difficult, unless you have experienced lawyers to handle your case. Some of the basic myths associated with foreclosure include:
- Bankruptcy cannot stop foreclosure
One of the biggest advantages of filing for bankruptcy is undoubtedly the automatic stay provision that puts an end to all collection actions including foreclosure! This provides you with necessary respite and gives you time to keep your funds in order which can help you make payments to avoid foreclosure. Chapter 13 repayment plan also gives you the opportunity to catch up on past due payments so that you can avoid foreclosure of your home.
- Banks are on the lookout for your home
Nothing could be further from the truth. Banks do not have the time or inclination to follow the lengthy process of foreclosure, especially if the property is not worth much. Foreclosing on a property can be detrimental to the bank’s reputation and be bad for their business, therefore, most banks avoid exercising this option, unless no other choice is available.
- Foreclosure cannot be avoided
Timely intervention by skilled lawyers and filing for bankruptcy can avoid foreclosure. There are few options available, however, most people are unaware of them. Since the deadline is critical in the bankruptcy process, it is important you consult a bankruptcy lawyer to file a case in time.
In case you are behind mortgage payments and are worried about foreclosure action against your property, it is advised that you contact experienced bankruptcy lawyers at 888-297-6023 to get professional legal advice regarding your situation.