Many bankruptcy cases begin after a person’s home has been foreclosed upon. Foreclosure and bankruptcy are two of the most difficult personal and financial challenges that can be faced by individuals. Because the foreclosure can be complicated and because it is feared by most people, there are a large number of misconceptions and myths that exist about the foreclosure process. This article will discuss some of the most common myths about foreclosure so that individuals can better prepare for the foreclosure process.
Myth # 1: A Person is Not Responsible for Paying a Bank’s Legal Fees
Many individuals assume that because their home is being foreclosed upon, that they are not also required to pay the bank’s legal fees. Unfortunately, this is simply not true. In reality, most mortgage agreements state that in the case of foreclosure, the person who is granted the mortgage by the lending company is responsible for the bank’s legal fees.
Myth # 2: Once in Motion, a Foreclosure Cannot be Stopped
Many individuals fear the foreclosure process and believe that once it starts, it is impossible to stop. In reality, if a homeowner is able to somehow find all of the money for all missed mortgage payments in addition to any fees prior to foreclosure, the foreclosure process can be stopped.
Myth # 3: A Homeowner’s Association With Property Ends After Foreclosure
The foreclosure process is much more complicated than many individuals realize. In reality, after foreclosure, if a bank or lending institute sells a home for less than what the individual owed on the mortgage, the individual will be required to pay this difference. One advantage of Chapter 7 bankruptcy is that in some cases a homeowner might be able to eliminate this debt after filing for bankruptcy.
Myth # 4: Filing for Bankruptcy Stops Foreclosure of a Person’s Residence
Unfortunately, foreclosure will continue even if a person declares bankruptcy. Bankruptcy, however, might delay the length of time that it takes to foreclose on a home. This myth was likely created because this added amount of time sometimes allows individuals to stop a foreclosure from occurring. During this extra amount of time, individuals can stop the foreclosure process by gaining enough money to pay off any missed mortgage payments or creating a repayment plan that satisfies the requirements of the mortgage servicer.
Contact an Experienced Oklahoma Bankruptcy Lawyer
Bankruptcy can be an overwhelming process that leaves individuals facing a variety of challenges. One of these challenges involves deciding whether it is better to handle debt by filing Chapter 7 or Chapter 13 bankruptcy. Many individuals in the Oklahoma City area have discovered that attorney Jim A. Lyon is able to help navigate the many obstacles that can arise during this process. For over 30 years, attorney Lyon has helped many individuals who are challenged by bankruptcy issues. Do not hesitate to contact attorney Lyon today by calling (405) 843-0461 or completing the firm’s quick and convenient online form.