If you are facing foreclosure, filing for bankruptcy will delay the process. However, this is only a temporary delay as until the mortgage is either refinanced reinstated, or the house is sold, the auction is bound to happen sooner or later. Filing for bankruptcy will not indefinitely delay or prevent the foreclosure of your house, but it will certainly delay the process to a very large extent.
Since your mortgage is on your home, filing for bankruptcy does not guarantee that your house will not undergo a forced sale. If you have income after filing for bankruptcy, you can arrange for your debts to be paid off in a certain fixed period of time. Under chapter 13 bankruptcy you can make up for all the times that you defaulted on your repayments, but the problem is that if you default under this program, your lender can legally facilitate the foreclosure of your home. On the other hand, chapter 7 bankruptcy is the stage where you can be forced to sell your assets to pay for your liabilities, and all the home equity will go to your lender.
Since these are huge steps, never be forced to file for bankruptcy and discuss your options with a reliable and recommended bankruptcy counselor. Also, beware of scams such as ones which tell you that you will receive a certified copy of your deed if you pay a certain amount of money. Your local deed recorder or county will give you a certified copy of your deed for about ten dollars, while scammers will ask you for much more money than is fair. You should consider a home equity line of credit when debating between the same and a fixed rate mortgage, as the line of credit is much more flexible. It is easy to get and no closing costs are involved. Unless you write a check to use the money, you are not charged for it.
Then after you have paid it off, you can decide whether you want a new first mortgage. If an elderly citizen passes away without a will, a local probate court will decide who will inherit the deceased’s assets. The surviving family members will be seen in a specific order with regard to who is considered first as entitled to the inheritance. A will can be prepared for as low as a hundred or a couple of hundred dollars and will ensure after your death that your assets and money will go to the individuals you want them to go to.
If someone remarries, their new spouse’s name is not required on the mortgage loan papers. However, the spouse who legally owns the house can sign and record a quitclaim deed, thus giving the other spouse part of the interest in the house. Joint tenancy has many advantages, two of which include equal rights to joint tenants and the avoidance of probate if one of the joint tenants dies. The title can even be put into a revocable living trust.