File Bankruptcy

Bankruptcy is always a last resort. However, it could be the only thing that will let you keep your house out of Foreclosure. If you are in Foreclosure and the lender or servicer will not stop the proceedings for any of the previous remedies discussed, consider filing bankruptcy. Once bankruptcy is filed Foreclosure proceedings are halted immediately.

While a bankruptcy will have a large negative impact on your credit for a long time to come, so will a foreclosure. But with a Foreclosure you lose your house too.

Talk to a bankruptcy attorney about specific pros and cons to filing bankruptcy, if your lender or servicer will not consider any other options. Remember, while your loan service collections department can be aggressive and downright unfriendly when trying to collect past-due mortgage debt, their tune will change quickly if you inform them that you are unable to repay the debt.