Owning a home is one of the greatest achievements in your financial life. Although many people are comfortable in their role as a mortgage loan debt holder, this can become a source of stress for anyone experiencing a financial hardship. If you are considering filing for bankruptcy in Tampa, there are some things you need to know about how the process interacts with your mortgage loan.
In Bankruptcy
First, find comfort in knowing that bankruptcy process is not designed to hurt your status as a homeowner. In fact, bankruptcy can be a great solution for protecting your home and avoid foreclosure. In a Chapter 7 filing, you can erase much of your unsecured debts that will free up income to be allocated towards resolving your missed payments. A Chapter 13 filing may allow you to have part of your mortgage loan debt reduced, strip off second mortgages or equity liens.
After Bankruptcy
Many people fear their future of credit and loans after filing for bankruptcy. The truth is that much of the damage done to your credit happens long before you enter bankruptcy. The worst thing you can do for your credit and future at obtaining a loan is allowing your debt to go unresolved. Bankruptcy eliminates your debts in time, allowing you a clean slate for rebuilding a positive lending history. That isn’t to say that you will be able to jump immediately back into the big borrowing game, rebuilding takes time; but you can secure a mortgage loan in time with a little patience and responsible borrowing after your case is complete.