Foreclosure has negative effects for the homeowner, their children, and the community. Instead of walking away from a mortgage because the homeowner lost their primary source of income, incurred other debts that make it difficult to manage all of their bills, or simply don’t want to pay for a house they don’t think is worth the price it pays to explore alternatives. There are ways to avoid these negative effects, but they require a homeowner to be proactive. Waiting for the lender to take action almost always results in a family losing their home.
In addition to struggling to find a new place to live after a foreclosure in Hamilton, OH, a family often needs to find new schools for their children, and the children have to make new friends. Depending on the age of the children, the social consequences of having to move in the middle of a school year can be dramatic. Once the foreclosure action has started, there are few options for stopping or stalling it. Those who want to keep their homes may be able to file for bankruptcy protection to deal with the issue.
Although bankruptcy will have an effect on the homeowner’s credit standing, it won’t have much, if any, negative impact on the community. When families remain in their homes, the community has stability. Neighbors know each other, and children are able to form lasting relationships with their classmates and teachers. In most cases, filing chapter 13 bankruptcy is a better option than walking away from a mortgage. The bankruptcy courts have options available that the mortgage company might not offer to a struggling homeowner.
In some cases, chapter 7 is a better choice. When a family is not able to afford their home, even with a payment plan set up through the bankruptcy court, they can avoid foreclosure in Hamilton, OH, but will likely have to forfeit their house. Although filing bankruptcy does result in a notice on the homeowner’s credit report, it may also discharge other debts, such as credit card bills and money owed to doctors or hospitals. Hamilton homeowners who are struggling to make their mortgage payments can find more information by visiting Domain before the lender files for foreclosure.