| With adjustable rate mortgages coming due, | | | | friend who needed help and as such a spouse may |
| foreclosures are on the rise. For many a consumer, | | | | have chosen to cosign a loan application without first |
| bankruptcy does not follow far behind. Yet in recent | | | | conferring with their mate. A few short months later, |
| months Nevada bankruptcy filings have shown that | | | | the friend is unemployed and has defaulted on the |
| when done correctly, they can stop foreclosures | | | | loan, leaving the spouse on the hook for a payment |
| before they even occur, thus protecting a desperate | | | | she or he cannot possibly afford. |
| consumer from one of the most insidious financial | | | | Perhaps the cosigner's fiscal situation also has |
| mistakes she or he could be making. | | | | changed and thus what may have been a possible |
| Generally speaking, a foreclosure proceeding is a | | | | debt a few short months ago is now a problem of |
| mortgage lender's attempt at recovering any moneys | | | | insurmountable proportion. While this spouse may be |
| due that a borrower is unable or unwilling to pay. If | | | | in hot water with their mate already, the |
| the borrower is upside down in the loan - in other | | | | temperature is only bound to rise when considering |
| words, she or he owes more on the home than it is | | | | that those couples residing in community property |
| actually worth or will fetch during a foreclosure sale | | | | states will have to both bear the brunt of the |
| or auction - the remainder is still due and owing and | | | | financial misstep. |
| the borrower will find that in addition to having lost a | | | | Thus, anyone residing in Arizona, California, Idaho, |
| home, she or he will now also face a judgment and | | | | Louisiana, Nevada, New Mexico, Texas, Washington, |
| possible collection proceedings. | | | | and Wisconsin will do well to think twice to pledge for |
| Nevada bankruptcy filings are stopping foreclosures | | | | another on the dotted line of a contract! Thus, |
| because a home is protected during a bankruptcy | | | | Washington state bankruptcy filings are in some |
| proceeding, giving the borrower the extra time | | | | cases the only avenues left open for a marriage |
| needed to come up with the funds to bring the | | | | partner's fiscally unsound decisions, which now affect |
| mortgage current and thus at least save the home, | | | | both parties of the marriage. |
| even as a car may fall victim to the bankruptcy | | | | Even as other avenues are open to get out from |
| dealings. In the same vein, by avoiding a foreclosure, | | | | under the fiscal obligation, the fact that the original |
| a borrower is in a better position to once again own | | | | debtor more often than not is unable to qualify for |
| a home in the future since a foreclosure is one of | | | | the loan in her or his name lends credence to the |
| those notations on the credit report that will follow | | | | fact that the cosigner is more often than not stuck |
| her or him around for a very long time indeed! | | | | for the financial obligations and it is wise to never, |
| Who has not heard the tale of the kind mom or dad | | | | ever cosign on a loan, unless you can easily afford |
| who sought to help out junior by cosigning on a car | | | | the payments. |
| or home loan? Then again, perhaps it was a good | | | | |