FORT WORTH (Fort Worth Star-Telegram) – A growing number of Texas homeowners are filing for bankruptcy to avoid losing their homes, according to a recent study by Foreclosure Listing Service. Unfortunately, bankruptcy may not offer the protection they're hoping for.
The Addison-based firm analyzed post-bankruptcy cases of homeowners in 60 Texas counties and found that $2.28 billion worth of real estate was affected by a bankruptcy filing last year. That's an increase of 26 percent over 2008’s volume of $1.92 billion.
In 2009, 12,170 properties were affected — about 1,000 more than the previous year. In those cases, the homeowner did not comply with a mortgage payment schedule set up by a court trustee, said George Roddy Sr., president of Foreclosure Listing Service. As a result, the property loses bankruptcy protection.
"Generally, when these properties lose the protection of the bankruptcy court, they enter the foreclosure pipeline," Roddy said.