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Everyone knows what foreclosure is and how it works but the after stage of foreclosure process is unknown to everybody. There are possibilities of many type of event after the foreclosure procedure. The time doesn’t stop by any obstacle in life but time removes every bad or good effects of any event slowly from every life and everybody should get back their previous life. The foreclosure may effect on your life but it is not stop rather it is a new start with new location and new home after losing the old home in auction.

If you can use the redemption period to buy back the home this will be the first thing which you may try. The redemption period depends on which states you live as it is varied in every states of USA. Within this period you have to leave your current home and search for new home live after losing home on foreclosure. You can get “Key money” to leave the home nicely from the new homeowners. If you don’t leave your home the lender may bring eviction notice against you. The eviction notice will allow you, a foreclosed homeowner to stay only for more 3 days from the date of the eviction notice.

The eviction harassments and foreclosure records on your credit report may stop you to get good landlord and home for living. When your state has no redemption period option you have to leave your old home quickly after the auction of that home.  The foreclosure has a huge negative effect on your credit score which destroy your credit score at a trace 200-250 points. In this situation you need to try to rebuild your credit score by taking small loans with the help of family members and friends that.  You make a way to get out of the situation by following the steps.

The Treatment of a Deficiency Judgment in Bankruptcy

The deficiency judgment is a legal judgment against the remaining loan balance owed by the borrower. The lender has the right to get judgment against the borrower obligations. A short sale of a real asset at a moderate price is going to happen when the lender like to avoid the foreclosure and pressing borrower to pay off the balance in their financial hardship. The lender will not release the borrower without collecting the remaining balance of the loan. The court orders that borrower personally liable for unpaid debt. This is called the deficiency judgment. When the borrower has filled a bankruptcy and the lender also claim his deficiency judgment there are some different treatment for that deficiency judgment in bankruptcy.

If the lender gets the chance to claim deficiency judgment against remaining balance of the loan the borrower before the date of the bankruptcy, this debt of the borrower will be consider as secured debt which must clear off first.  If on this situation the borrower can file a Motion to Avoid Lien to make this lien unsecured and the motion is granted, then this deficiency judgment become an unsecured lien which must be exempted by the court to clear off under bankruptcy act. In case of non-granted motion the lender will get chance to claim.

If the lender can’t obtain an offer granting judgment against the borrower to claim the deficiency money before the filling of bankruptcy you have the chance to avoid this unsecured lien. Overall the filling of bankruptcy will help to automatic clear off all the debt the lender will dismiss the case of deficiency judgment. The lender must claim his deficiency judgment but you need to get knowledge about your state’s law on deficiency judgment from you bankruptcy attorney who will help you to decide whether the filling bankruptcy is best option for you or not.

Advantages and disadvantages of chapter 13 bankruptcy

The chapter 13 bankruptcy is the U.S. bankruptcy code in which the debtor is allowed to keep his property but he has to pay debts over time from his regular earnings. It is different from the chapter 7 bankruptcy which is a straight bankruptcy with liquidation of all real assets. If the creditors will not forced you to choose the code of bankruptcies you have chance to chose the bankruptcy code from 7 to 11 but chapter 13 and 12 are restricted for self-employed and nonindustrial business person . The chapter 13 bankruptcy plan is a financial reorganization under the act of US federal court for the debtor with regular source of earnings to repay completely or partially.

Advantages:
In case of the chapter 13 bankruptcy the debtor have chance to save their home and assets from foreclosure. They can save their future from the bad effect of foreclosure proceedings and they also get time to clear off the debts from their earnings as well as the other secured debts. The chapter 13 bankruptcy will safeguard to the creditor and the third party of the mortgage loan because it is a bankruptcy plan like a consolidation loan.

Disadvantages:
Any bankruptcy will effect on your credit report. The bankruptcy stays on credit reports for up to 10 years. In this period of chapter 13 plan the bankruptcy court not allow the debtor to take any new credit. The chapter 13 trustee will decide whether you are eligible to chapter 13 bankruptcy or not. They will look that your income is greater than the state median income or not for the last five years.
The chapter 13 bankruptcy is so helpful plan of bankruptcy court of US. The chapter 13 bankruptcy is a individual reorganization of his financial condition.