Events in the American property markets have emphasized how important it is to make every effort to avoid foreclosure. Legislation obliges lenders to provide as much foreclosure assistance as possible and they may not set the foreclosure process in motion until they have done this properly. It is equally important to avoid bankruptcy in a personal capacity and to avoid business bankruptcy as well. This is because the effects of foreclosures and bankruptcies linger on for years and give rise to bad credit records too.
Troubled borrowers must do all they can to avoid bankruptcy, because society attaches a stigma to it that may be unfair. Experts recommended debt settlement programs as a way to avoid filing bankruptcy – our advice is do all you can to avoid personal bankruptcy and to avoid business bankruptcy too. A great deal of advice on how to avoid corporate bankruptcy is available from government agencies. Any lender can help a borrower avoid foreclosure. If faced with a challenge to avoid chapter 7 liquidation, a borrower with a cash flow crisis should attempt a less damaging private reorganization of their finances to avoid chapter 13 threats too.
It makes no sense at all to let personal pride stand in the way and then avoid foreclosure help. Even if borrowers in financial trouble made unfortunate decisions they should follow up on all available avoid foreclosure options. If they think they may be able to avoid short sale consequences, then they should also follow up on short sale help as well. If loan modification help fails and they must sell, then a short sale is often the best option. At times, it may seem easier for a troubled borrower to give up and let a bank take their home. This should never be the outcome of choice.
It is government policy that a loan modification conference must take place before a lender lodges a foreclosure application and that a borrower has the right to attempt to negotiate a short sale. These provisions often assist the borrower to avoid bankruptcy unless they choose to avoid foreclosure help instead. Our advice remains the same. Avoid losing your house. Avoid short sale if you can. At all costs, avoid foreclosure. A home is precious and a family should hang on to it too.
