How does a bankruptcy affect a foreclosure

(My Original Blog Post: http://ping.fm/jlURI)
 

Know some people in foreclosure, that think about doing a bankruptcy to slow things down, well I tell them this...

How Does Bankruptcy and Short Sale Work Together

I am going to refer this over to Todd Rooker 763-383-0959 a specialist mentioned above with credit repair knowledge, Todd can refer you to an attorney that specializes and understands the affect of bankruptcy and the foreclosure process. As a general rule a bankruptcy doesn’t stop a foreclosure, and in some cases it can only slow it down. Situations where a bankruptcy is done before the sheriff sale could slow down, or postpone the sheriff sale, whereas if it happens during the redemption period it would just take place within that redemption window, so my understanding is that before the sheriff sale would be where you are slowing it down. Being in foreclosure prior to the sheriff sale and prior to the foreclosure being filed by the bank would be considered a pre-foreclosure. Also the lender must file a motion asking for the foreclosure to proceed. I would highly suggest that you go over this with a bankruptcy attorney who does this every day for a living. You will be getting a letter known as an “Affidavit of Abandonment for Real Estate & Asset”.  There have been some new legislation trying to change contractual law in the case where bankruptcy can now affect foreclosure more, so please check into this with an expert.  Please look into the term insolvency with your CPA or account as to whether you will owe taxes or not from the short fall on your short sales.