Rochester, New York
2468 E Henrietta Rd.
Rochester, NY 14623

What Situations Make Home Foreclosure a Smart Move? November 9, 2017

Rochester, Monroe
What Situations Make Home Foreclosure a Smart Move?, Rochester, New York

While nobody wants to lose their home, there are some scenarios in which a home foreclosure may actually be beneficial to your situation. A foreclosure will undoubtedly have an impact on your financial future, but it might also be the right step to take to get you back on more solid financial footing. How can you know when home foreclosure is right for you? Below, bankruptcy lawyer Robert A. Schwartz in Rochester, NY, discusses three scenarios where foreclosure might be a logical next move.

You Simply Cannot Repay What You Owe

If you just can't repay what you owe on your home—what's in arrears, your current monthly mortgage obligations, or both—foreclosure could help you get out from under the weight of a suffocating financial obligation. But remember, you will lose your home, and your credit will take a serious and significant hit. If an inability to pay is the only reason, check out alternatives first; a short sale, for instance, could have a less negative impact on your credit.

You Need Time

home foreclosureWhile it is always advisable to get a home foreclosure over with as quickly as possible, some in the early stages of foreclosure may need time to explore alternatives or make other living/employment arrangements. Once you are notified of the foreclosure, there is typically an extended period of time before the foreclosure is finally granted; in some cases, this could be a year or more.

During this period, you could conceivably live in your home rent- and mortgage-free while you make a Plan B. After the foreclosure is approved, you then have a doable strategy for getting back on your feet—just be sure to do the hard work of planning and arranging while the foreclosure is in process.

You File Bankruptcy & Want to Sell Your Assets

If you file for bankruptcy, the courts will issue an automatic stay on any foreclosure action that has been initiated against you. This stay can be temporary or permanent, depending on the type of bankruptcy you file and the exact details of your situation. But, the stay can also buy you some valuable time in which you can decide if selling your home or proceeding with the foreclosure may actually be the best way to offset some of your other debts. Obviously, this is a situation to discuss in depth with your bankruptcy lawyer.

If foreclosure is a reality you're dealing with, let bankruptcy and debt relief lawyer Robert A. Schwartz help. For more than three decades, he has been representing clients throughout the Rochester area. Call (585) 334-4270, visit him online, or find him on Facebook or Google+ for a free case evaluation today.

Other Announcements, Events and Deals from Robert A. Schwartz
Why It Is Essential to Seek Legal Representation Prior to Real Estate Closings, Rochester, New York
For most people, buying a home is the largest purchase they will ever make. Even if you happen to find an incredible deal on a property, though, it is wise to protect your more
What Are the Federal Laws Regarding Wage Garnishment?, Rochester, New York
If you’re in debt, you may be subject to wage garnishment, or the automatic withdrawal of funds from your earnings. There are federal laws governing the garnishment of wages, and it’ more
3 Vital Rights When You're Facing Wage Garnishment, Rochester, New York
If a creditor obtains a judgment against you, they can take steps to seize a portion of your wages to recover what you owe. When a creditor serves a Wage garnishment & more
Do You Have to Go Through Home Foreclosure to File for Bankruptcy?, Rochester, New York
If you’ve fallen so far behind on your debts that you have no hope of keeping your head above water, bankruptcy can be the only way of getting your life back on track. However, more