If you're in financial limbo because of a pending foreclosure that never comes, you're not alone. According to an article in the Washington Post, about 1 million borrowers are waiting in the shadows of pending foreclosures that never happen. This is a dangerous situation because many homeowners facing foreclosure can't pay their mortgage yet the bank takes "forever" to foreclose on the house. The situation is actually becoming extreme.
The article quoted a homeowner caught in foreclosure limbo:
"I have even begged them for a foreclosure," delinquent mortgage-holder Charlotte Jensen said. When she realized she couldn't save her Glen Allen home last year, she filed for bankruptcy, packed up her family and moved out. Nearly a year later, Bank of America has yet to take back the home."
A year passed and the bank still hasn't foreclosed? That's just too long to be stuck in foreclosure limbo. This woman was smart to file bankruptcy and get out of that house. Remaining in a house you can't afford is financial suicide and can lead to other financial issues such sinking deeper into debt or creating other bills related to the house in foreclosure.
Homeowners who are stuck in foreclosure limbo (meaning their name is still on the deed) are also stuck paying the taxes, utilities and the upkeep on a house that they will NEVER own. It's important to not become stuck in a foreclosure situation such as this. If you find yourself drowning in debt and stuck in foreclosure limbo you may need to file bankruptcy.
Bankruptcy can help you save your home, or if you can no longer afford your mortgage it can help you "give back" the house, discharge debt and get a fresh financial start without remaining in a place of uncertainty. To find out how bankruptcy can help you avoid foreclosure limbo and protect your assets, contact a Dallas- Fort Worth bankruptcy attorney today.