If you are one of many Wyoming homeowners struggling to pay the mortgage, you may stop Wyoming home foreclosure through bankruptcy.
The housing market around the country has partially recovered from its 2008 crash, but you may be one of many Wyoming homeowners struggling to pay the mortgage. In order to stop Wyoming home foreclosure, bankruptcy can be an option. Filing bankruptcy may help you keep your home, clear your debts and remove secondary liens from your property deed. Although bankruptcy lowers your credit rating, it may be a better option than losing your home.
Every state in America has foreclosure laws that enable lenders to collect mortgage-related debts. Wyoming has two types of foreclosure: judicial and non-judicial. The former requires a judge's order for the lender to sell your home, while the latter does not. Most of Wyoming's foreclosures are non-judicial because this is a less expensive means of foreclosure. By filing for certain types of bankruptcy, you can halt the Wyoming home foreclosure bankruptcy process. Chapter 13 bankruptcy enables you to keep your home while you pay back debts over three to five years. If you choose to file bankruptcy, do so before the foreclosure sale date of your home.
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A few types of bankruptcy enable you to keep your home, and most enable you to clear your mortgage debts. If clearing your debt is the primary goal, you may have more options when it comes to bankruptcy. Bankruptcy generally absolves debtors from paying their debts. Chapter 7 bankruptcy enables lenders to sell your home immediately and to collect all the proceeds from the sale in order to settle your outstanding debt. If you own a homestead, you may be able to keep $10,000 of the property’s equity. Mobile home owners may be able to keep $6,000 of the equity.
Another important advantage of bankruptcy is the possibility of liens being released from your property, especially if you owe more on the mortgage than your home is worth. Not all bankruptcy options allow for stripping of liens. It is therefore important to seek legal advice if this is relevant to you.
Losing your home can be devastating. Although bankruptcy hurts your credit rating, it is a viable way to avoid foreclosure. Selling your home in pre-foreclosure is a better option than bankruptcy. If you need to talk with a real estate agent about your options, go to Reply! to find a professional near you.