Seletha Nagin filed for Chapter 7 bankruptcy in 2014; she is the wife of former New Orleans mayor, Ray Nagin. The couple’s house was almost sold at a foreclosure auction. Nagin filed for bankruptcy a day before the auction. The couple has some foreclosure prevention relief because they did file for bankruptcy, but that’s not always the bet option, as filing bankruptcy will have negative effects on your credit. It can affect a person’s credit score because it stays on a credit report for seven years. It may keep the couple from buying another home for several years; but they likely will not be able to get a good mortgage loan rate.
Creditors cannot try to seize the couple’s Texas home. The couple has foreclosure prevention and protection. Nagin’s wife has filed for Chapter 7 bankruptcy. She is working with a court-appointed trustee to reduce debts. The former LA mayor is guilty of public corruption charges; he owes $500,000 in public restitution. The couple’s house is protected. No one can foreclosure on his or her Texas house. A bankruptcy ruling protects the Nagins from creditors. These creditors cannot try to seize the house.
You may find yourself in a tight spot. You could file for bankruptcy to protect your house, but it is not the only way out of foreclosure. There are other ways to protect yourself from foreclosure. It is better for you to prevent foreclosure; use foreclosure prevention tactics before you lose the house. Some borrowers think bakruptcy is the only option they have. The Nagins did wait too long to apply for assistance, when there are options for borrowers to stay in their homes, so long as they get assistance sooner than later. As for the Nagins, they likely will keep their Texas house. They still must repay debts.
It is better to seek foreclosure prevention counseling before you must seek Bankruptcy
Why not opt to correct the problem before it is worse? Bankruptcy prevents foreclosure for a time. It does not address the true heart of the problem. It does not address the need for foreclosure protection and foreclosure prevention to keep a roof over your head.
Seeking out counseling from a certified HUD counselor may help Texans realize foreclosure prevention is important. It is just as important as foreclosure protection. There are steps couples can take, before they get a foreclosure notice in the mail. Did you know one in every four Texas families deals with foreclosure? They may lose the house and its contents. The Texas Department of Housing and Committee Affairs have helped 1,700 families avoid foreclosure.
Why bankruptcy is never as good as preventing foreclosure before it Starts
To file for bankruptcy is not the same if you do ask for some form of foreclosure prevention. Before you look at homes for sale, it is best you think about your options. How can you prevent a foreclosure? A bankruptcy is a form of foreclosure prevention, but it’s not the only option. Foreclosure proceedings halt once a motion is filed. It is better to prevent a problem than have to deal with its aftermath. The costs to prevent a foreclosure are much lower than the costs to proceed.
Have you made a decision to apply for foreclosure? Bankruptcy may be a form of foreclosure prevention, but it is not the best form. It is best to fix the problem. Think about foreclosure before you get a loan and have your lawyer read all documents. This may save you heartache, if you do not want to wait a number of years to try to buy another home. You may need time to improve your credit score. If you have lost a home to foreclosure, you can begin again. You have a second chance to purchase a house. There are free resources to help you make wise housing decisions.
Organizations, such as Save My Texas Home, have helped hundreds of Texas families to save their homes. It is a good option for homeowners who want to have foreclosure alternatives, but they do not know where to look. This organization works with government and non-government agencies. If you need help saving your Texas home, you can call Save My Texas Home, today, at 512-271-5044.