Explore the Mortgage101 Library
Check Local Mortgage Rates
Calculators
FEATURED CALCULATORLoan Program Choices
Use our calculator to find out your estimated monthly payment in advance: Enter the loan amount, interest rate, and length of mortgage.
Try our Mortgage Payment Calculator
TERMINOLOGY
A common question for many homeowners in financial peril is can bankruptcy stop foreclosure? There are two main types of bankruptcy, Chapter 7 and Chapter 13. The Chapter 13 bankruptcy was originally created to stop foreclosure. In the event the date of the bankruptcy case is filed before the date of the foreclosure, the bankruptcy will prevent the foreclosure sale from taking place. A Chapter 13 bankruptcy will establish a reasonable amount of time to resume making monthly payments and bring the loan to a current standing. This will allow you to save your home and continuing living there.
A Chapter 13 reconfigures your debts based on your take-home income, with an allowance for living expenses. As such, the payments will be reduced to a manageable amount you can afford. If your credit rating is already bad and only risks getting worse, filing bankruptcy will not do anymore harm. Eventually, it will help your credit score improve, because it will clear or reduce your debt, making it possible for you to handle more at a later date.
More Articles...
What Are Typical Mortgage Down Payments?
3 Reasons Banks Reject Short Sales
- What To Do When Mortgages Default
- 3 Factors that Can Negatively Affect Your Mortgage Application
- Appraisal Basics
- What Lenders Don't Reveal About Home Equity Loans
- FHA Loans for a First-Time Home Buyer
- Second Mortgages: Advantages and Disadvantages
- Short Selling a Rental Property
- FHA Eligibility with Bankruptcy and Foreclosure
- Alternatives to Getting a 2nd Mortgage