Is it Moral to Allow Your House to be Foreclosured on During Bankruptcy?

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Christy Thompson has 36 Published Articles

United States of America,
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Chandler,
1311 W. Chandler Blvd.,
Suite 220

Is it Moral to Allow Your House to be Foreclosured on During Bankruptcy?

Posted On : Dec-24-2010 | seen (596) times | Article Word Count : 627 |

Is it moral to allow your house to be foreclosured on during bankruptcy? The answer may surprise you.

Such a good question. You’re right. I am very adamant that people be logical about their foreclosure, but there is a lot of emotion and concern whether this is the right thing to do. How are you going to affect yourself by doing so?

A lot of my clients really struggle with the concept. Some of them find that after they’ve lost a job or they have less income as the result of no overtime or one spouse has gone from full time to part time, they simply can’t afford the payments.

Many of my clients have tried to get a loan modification and have either not been successful or the payment hasn’t been reduced; and they’ve been put in a position where now they’re behind on their payments and may be facing foreclosure. They are still struggling.

So I see my clients in a very dire financial situation. Not so much that they’re not doing what they should be doing, rather what they need to be doing.

If you look at…again, going back to the math…figure out how much interest you paid on this property. Give yourself time to decide whether you think this is financially your best decision.

A lot of people struggle with the concept that giving up their home, they’re also breaching that contract. They’re breaking that contract that they had with the lender. They have to remember that the lender does get the house back. The lender is not completely out of pocket. They now have the home that my client is so attached to. And, they have the legal right to sell it.

The lender does receive some kind of return on that mortgage. It may not be the actual amount that they wanted; but, nevertheless, they’re not without something that they get back if you decide to foreclose.

I don’t see it so much as a moral dilemma that people should struggle with as much as they should be giving some thought to whether this is in their family’s best financial interest.

Again, if you sit down and do the math, you figure out that a foreclosure, which will be on your credit. But if you build better credit within two years, so two years after foreclosure you could purchase another home. Or you could stay in the home that you’re presently in for possibly a decade before it returns.

Between those two considerations you have to think again what’s better for your family.

I’m not opposed to foreclosure. It’s not a crime. Many of the debts that are attached to a house, the home loans, are debts that a lender cannot pursue you for after foreclosure. A lot of people are covered.

And they really need to look at the fact, if they’re struggling to pay that mortgage, is it just the mortgage that’s giving them the problem or is it the mortgage and credit card debt and unpaid personal loans?

When you’re in that situation, you really should be thinking about bankruptcy.

But treat your foreclosure like a financial decision. If you decide to stop making your mortgage payments, do something with those funds. Make smart decisions with those monies. Apply them to other debt. Apply it to a savings account. That’s the money you’re going to use to go rent.

I am a strong believer in a strategic foreclosure. I really think that a lot of people that have come to the conclusion that their property is not worth keeping, should consider a strategic foreclosure.

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<h1>Is it Moral to Allow Your House to be Foreclosured on During Bankruptcy?</h1> Author: <a href='http://www.articleseen.com/profile_Christy Thompson.aspx'>Christy Thompson</a> Such a good question. You’re right. I am very adamant that people be logical about their foreclosure, but there is a lot of emotion and concern whether this is the right thing to do. How are you going to affect yourself by doing so?

A lot of my clients really struggle with the concept.  Some of them find that after they’ve lost a job or they have less income as the result of no overtime or one spouse has gone from full time to part time, they simply can’t afford the payments.

Many of my clients have tried to get a loan modification and have either not been successful or the payment hasn’t been reduced; and they’ve been put in a position where now they’re behind on their payments and may be facing foreclosure.  They are still struggling.

So I see my clients in a very dire financial situation.  Not so much that they’re not doing what they should be doing, rather what they need to be doing.

If you look at…again, going back to the math…figure out how much interest you paid on this property.  Give yourself time to decide whether you think this is financially your best decision.

A lot of people struggle with the concept that giving up their home, they’re also breaching that contract.  They’re breaking that contract that they had with the lender.  They have to remember that the lender does get the house back.  The lender is not completely out of pocket.  They now have the home that my client is so attached to.  And, they have the legal right to sell it.

The lender does receive some kind of return on that mortgage.  It may not be the actual amount that they wanted; but, nevertheless, they’re not without something that they get back if you decide to foreclose.

I don’t see it so much as a moral dilemma that people should struggle with as much as they should be giving some thought to whether this is in their family’s best financial interest.

Again, if you sit down and do the math, you figure out that a foreclosure, which will be on your credit.  But if you build better credit within two years, so two years after foreclosure you could purchase another home.  Or you could stay in the home that you’re presently in for possibly a decade before it returns.

Between those two considerations you have to think again what’s better for your family.

I’m not opposed to foreclosure.  It’s not a crime.  Many of the debts that are attached to a house, the home loans, are debts that a lender cannot pursue you for after foreclosure.  A lot of people are covered.

And they really need to look at the fact, if they’re struggling to pay that mortgage, is it just the mortgage that’s giving them the problem or is it the mortgage and credit card debt and unpaid personal loans?

When you’re in that situation, you really should be thinking about bankruptcy.

But treat your foreclosure like a financial decision.  If you decide to stop making your mortgage payments, do something with those funds.  Make smart decisions with those monies.  Apply them to other debt.  Apply it to a savings account.  That’s the money you’re going to use to go rent.

I am a strong believer in a strategic foreclosure. I really think that a lot of people that have come to the conclusion that their property is not worth keeping, should consider a strategic foreclosure.About the Author: To get additional information on debt settlement and bankruptcy options please visit our web site. We would also like to offer you a free online debt evaluation. You can claim your free online debt evaluation at <a rel="nofollow" href="http://arizonalegaladvocacy.com"> http://arizonalegaladvocacy.com</a>.

Christy Thompson, your <a rel="nofollow" href="http://arizonalegaladvocacy.com"> Chandler Bankruptcy Lawyer</a>. Article Source: <a href='http://www.articleseen.com/Article_Is-it-Moral-to-Allow-Your-House-to-be-Foreclosured-on-During-Bankruptcy_45871.aspx'> http://www.articleseen.com/Article_Is it Moral to Allow Your House to be Foreclosured on During Bankruptcy?_45871.aspx</a>

Article Source : http://www.articleseen.com/Article_Is it Moral to Allow Your House to be Foreclosured on During Bankruptcy?_45871.aspx

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To get additional information on debt settlement and bankruptcy options please visit our web site. We would also like to offer you a free online debt evaluation. You can claim your free online debt evaluation at http://arizonalegaladvocacy.com.

Christy Thompson, your Chandler Bankruptcy Lawyer.

Keywords : chandler bankruptcy lawyer, chandler bankruptcy attorney, mesa bankruptcy lawyer, mesa bankruptcy attorney, gilbert bankruptc,

Category : Finance : Mortgage

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