Chapter 7 Bankruptcy And Foreclosure Law
Chapter 7 bankruptcy is filed when a home owner is faced with the threat of foreclosure. However, the purpose of Chapter 7 is not to avoid a foreclosure, but it does have its genuine causes. Every foreclosure law is governed by the rules and regulations of the respective state. The time line for foreclosure also depends on the rules of the state.
When a court passes the stay order under Chapter 7, then a foreclosure cannot take place immediately. It is used as a temporary remedy for an impending foreclosure by several home owners. However, it is not a permanent solution for escaping from your financial liabilities and also there are several implications and repercussions for filing a Chapter 7.
According to the laws of foreclosure, any borrower who does not pay the mortgage rentals for two consecutive months or 60 days is a liable party. The mortgage company or the lender has the right to approach the court and demand for a foreclosure of the home on non payment issues. After which the court send letters warning the borrower of the impending foreclosure. If the borrower does not respond or make arrangements for the loan to be repaid then the house will be auctioned on a date decided by the court. However the borrower has time until the day of auction to redeem the property. In some states this time period is allowed until 365 days after the date of auction. Chapter 7 of bankruptcy whereas will stop the foreclosure because the borrower has filed his status as bankrupt and in the mean time the court will work out alternatives to arrange for funds through his assets for the insolvency problem.
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Foreclosure :
Government Foreclosure Listings
 A foreclosure is a process that allows the lender or a financial institution to auction a property that they invested in. If the borrower is into paying the monthly installments on a government guaranteed mortgage, then the lender decides to auction the house and get back the invested money. They do this so that they can stay in business and keep their finances in flow. In addition, if there are back taxes due, unpaid utility bills and mechanics lien, it ca result in government foreclosure. More..
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