How long does it take and what procedures does one who is being foreclosed on have to go through to get back in the game of buying necessities and downsizing to an older vehicle and finding an apartment and the like? We have had record foreclosures and I think their funds are tied up in legal rope while they await their settlements, right? How long before they are back in the game of buying items like used cars and used furniture and food and stuff if they have a job, but just can’t afford a mortgage on a house?
I am assuming, of course, that the debtor’s cash is being eaten up by legal expenses and the like in the bankruptcy thing to “get it over with” as quickly as possible.
I am looking for a time frame here, not “sooner than you think”! K?
Real Estate Professionals
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Bankruptcy and foreclosure on a secured debt such as a mortgage (or cars, appliances & the like) are different procedures. Foreclosure applies to a specific loan such as on a house; bankruptcy proceedings take into account all types of debt - mortgage, unsecured debt such as credit card, medical bills, and other creditors. There is nothing about bankruptcy or loan foreclosure that precludes the filer from purchasing items if he has the cash.
You’d be surprised how quickly you’ll be “back in the game”. Start by getting your living situation lined up. You’ll have to give a security deposit of a month or two. Personally, I would save for a used car rather than buy a used car on credit. The cost of credit for a recent debtor in bankruptcy is too high. Used furniture and food can be handled by most recent debtors.
I tell you this from many years of experience representing people who file bankruptcy and helping them recover thereafter.