We are at a point to where we cannot afford our home. We do not have any other debt to file but I don't want the company to come after me for the foreclosure. What is my best option? And what are the mortgage company's abilities and rights? What is the difference when it comes to your credit?

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Originally Posted by natanestar

we are at a point to where we cannot afford our home. We do not have any other debt to file but i dont want the company to come after me for the foreclosure. what is my best option? and what are the mortgage company's abilities and rights? what is the difference when it comes to your credit?

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This is one of those situations where a good Bankruptcy Attorney has to look at the situation, your finances, the balance you owe on the house, the market you're in, if the mortgage company is willing to work with you - and make recommendations based on you and your present situation.

Without knowing a lot more info any advice would be a guess.

The mortgage company certainly has the right to foreclose.

There's a lot of info on the Internet, the pros and cons, but this has been posted before on this site: It's from a real estate Attorney's site: "If you are facing foreclosure and cannot work out a deal or other alternative with the lender, bankruptcy may help.

If you get behind on your mortgage payments, a lender may take steps to foreclose -- that is, enforce the terms of the loan by selling the house at a public auction and taking payment of your loan out of the auction.

This won't happen overnight. The foreclosure process typically starts after you fall behind on your payments for at least two months, and often three or four. That gives you time to try some alternate measures, such as loan forbearance, a short sale, or a deed in lieu of foreclosure.

But if you've already tried and failed with these measures, now is a good time to consider bankruptcy as a possibility for avoiding or stalling foreclosure. Here are some ways that filing for bankruptcy can help you.

When you file either a Chapter 13 or Chapter 7 bankruptcy, the court automatically issues an order (called the Order for Relief) that includes a wonderful thing known as the “automatic stay.” The automatic stay directs your creditors to cease their collection activities immediately, no excuses. If your home is scheduled for a foreclosure sale, the sale will be legally postponed while the bankruptcy is pending—typically for three to four months. However, there are two exceptions to this general rule:

Motion to lift the stay. If the lender obtains the bankruptcy court's permission to proceed with the sale (by filing a “motion to lift the stay”), you may not get the full three to four months. But even then, the bankruptcy will typically postpone the sale by at least two months, or even more if the lender is slow in pursuing the motion to lift the automatic stay."

If it is just the house, you need to try and sell I for a short sale first, where the bank accepts a price less than is owed on the property.

Also have an attorney review your loan papers in some on the foreclosure they cann ot come after you, on other they can.

But in the end, let them foreclose for now, then if in months or a year or two down the road if they start coming after you, then you can consider the bankrutpcy.