Avoiding Foreclosure and Bankruptcy

Declaring bankruptcy and having your house foreclosed are two different entities.  If you are considering either, you should take a number of steps.

There are new programs out to help the home owner.  Search the Internet for H4H PROGRAM which is a new government sponsored program to help home owners avoid foreclosure.  Your lender should be able to answer all you questions.  There are certain income levels to qualify.  You also have to agree to give up a portion of any future profit you make on the sale of the property. You should be able to find a chart that explains the process.  The percentage varies by years that you maintain the loan in good standing.

Http://portal.hud.gov/portal/page?_pageid=73,7601299&_dad=portal&_schema=PORTAL

Also search the Internet for information on the foreclosure process in your state.  You may have between 3 and 10 months before the lender can take action.  An attorney can tell you exactly what the process is in the area you live.  An attorney can also answer your questions if you are considering filing for bankruptcy and other options that are available to you.

Your best bet is to work with the lender.  An attorney is also a good idea even if you are working with the lender.  They may know of some local agencies that can point you in the right direction.  Stay away from debt consolidation companies that do not offer courses on finance and debt control.  There are a number of agencies that can work with you, putting you through an education system to avoid this problem in the future.  Some of the agencies are able to work with lenders to reduce interest rates on charge cards and other short term loans.

You may want to consider selling the property.  Have a Real Estate Agent take a look at the property and give you a report on the property values in the area.  A good agent should be able to give you a tip on an agency offering financial independence classes.

Gather as much information as you can from as many sources to make an educated decision.  Start as soon as possible to give you the maximum amount of time to make a decision and follow the steps you need to take.