fisc-ny.com

When foreclosure finally strikes, the first and essential order of business is to get a handle on your finances situation. Do whatever possible and achievable to keep more money flowing in than flowing out – try to boost your income with a second job or overtime, slash unnecessary spending, and sock away as much cash as possible.

What you do with the savings and added income depends exclusively on your strategy. If you are committed to saving your house, set aside the surplus cash for reinstating the mortgage or working out a payment plan with your bank. If saving your house is a lost cause, you may choose to squirrel away as much cash during the redemption phase as possible, so you have adequate nest egg to take when you move. Tucked in the sleeves of homeowners facing foreclosure threat is the bankruptcy card – a potent card that can halt foreclosure in its tracks. When you file for bankruptcy, you get an automatic stay telling your creditors to back off.

However, the automatic stay is only temporary solution until the court approves the bankruptcy filing or one of the Read the rest of this entry »