Upside Down Mortgage

Posts Tagged ‘bankruptcy’

Mortgage Forgiveness Short Sale

Question: If i short-sale my house for $200K and i owe $425K on my mortgage do i still have to pay the difference?

My mortgage is $325k 1st loan & $107k heloc. Do i still have to pay the difference to my lender? Can they go after me even if i qualify for debt forgiveness?

Answer: A short sale requires permission of the lender, otherwise you have defaulted on your loan, so without their permission you would have to pay the difference.

The good news is the IRS just ruled that you are not liable for taxes on the amount of the loan forgiven by your lender.

New Tax Rules for Short Sales - Foreclosures

I could not afford to pay my mortgage payments so I filed chapter 7 bankruptcy on my mortgage lender. They foreclosed on the home so I just left, vacated / abandoned my property. I drove by a few times and saw people putting notices on my home and signs were put on. The mortgage company obviously took it back and did something to it.

My questions is that, now that I filed for Chapter 7 bankruptcy but my home had equity in it. It is worth, even in this economy, more than the amount I owe the mortgage company – what happens to the equity in the home? do they take it all? do I get anything?

Modify Mortgage In Bankruptcy

Question: What kind of Attorney should I talk to? I need to decide between Bankruptcy or Foreclosure?

My husband died last month and I lost his Social Security Disability. I am going to lose the house. My pay was cut last year by 10 percent due to the economy. I owe twice as much as the house is worth. Lender won’t modify the loan enough to help (plus I have a second Mortgage). I can’t short sale…. I want to talk to an attorney about whether it would be best to file bankruptcy or go into foreclosure. Both have long term ramifications and I don’t want any surprises. I need to talk to an attorney, but how do I find one and what kind?

Answer: ~~So sorry to for your loss.

Ask around if you want a referral. However you can look under the yellow pages or through Yahoo's yellow pages and find any who specialize in Bankruptcy. They will advise you on all your options. We just spoke with one yesterday and I am very pleased with the options we have. We are in a similar predicament with our own home. Due to the horrible economy, my husband has to close his businesses. Therefore we are looking at our options to.

From what I learned yesterday, if you know you can't keep your home (financially) chapter 7 is your best option. However, chapter 13 may work for you too, and can give you a hope of greatly reducing your loan amount on your home. It's a 5 year program which is very difficult, but is another option. Consultations are free, so find out what will work best for you. Best of luck in the impossible difficult times!~~

Why Would a Lender Modify My Mortgage

Mortgage Modification Examples

The mystique of Mortgage modifications

It may appear that a new “super hero” has appeared on the scene, ready to rescue anyone being defeated by a crippling mortgage, but is this a real “hero” or just some guy dressed in a cape? Can mortgage modifications rescue you, or is it all just hype?

What is a mortgage modification and can it really rescue you from the threat of foreclosure?

A mortgage modification is an adjustment to your current loan perimeters. It has the potential to lower your current loan payments, or interest percentage, although in some cases it may just be temporary.  In most cases a mortgage modification will affect the interest on a loan, not the principal. Interest is typically what is crippling you, in the first place. A lot of times what has happened is that you acquired a mortgage with a low variable rate and as the economy changed so did the rate, possibly as much as 100%.

The mortgage modification re-adjusts this interest rate, reducing it back to an amount you can deal with. By reducing the interest rate you can reduce the amount of the monthly payment and overall interest paid drastically. Sometimes this is only for a limited period of time, such as 5 years. This may be just long enough to allow you to survive in the short term and provide you with time to gain strength for the future. A mortgage adjustment can occur in another way. Rather than reducing the interest rate it may extend the life of the loan.

While mortgage modifications may not be the only thing dressing up as a “hero”, the other options may not be actual “Hero’s” out to rescue you but rather simply stalling tactics. One example of these stalling tactics is“forbearance”. This is a temporary discontinuation of payments to allow you a chance to catch your breath. Kind of like the time between rounds in a boxing match. Just like in a boxing match, you will eventually have to get back in the ring.

Another stall tactic is a “repayment plan”. This may be bundled with forbearance. This is the practice of allowing you to catch back up on missed payments, by allowing you to pay an additional amount on your monthly payment till you are caught up.

Will this so-called “super hero” rescue anybody?

Mortgage modifications are usually for those that have the ability to get back on their feet. If you are in such disarray that the lending institution cannot realistically picture you recovering, then you most likely will not be granted a modification.

Unfortunately, if there is no visible evidence of you being able to get back on track, then chances are you will be “out of luck”. For example, if your expenses exceed your income with no visible evidence of this changing then in most cases foreclosure will be inevitable.

While mortgage refinancing can offer a chance for you to survive, it is ultimately up to the lending institution as to whether you will qualify. So while mortgage modifications may seem to be the “hero” you will need to help you survive, a typical mortgage modification will not help everyone.

However you should never allow the situation make you loose hope. If you think your financial situation can be saved then by all means, pursue a mortgage modification, and if at first you get turned down then you may want to find a source that may be willing to help you succeed.

To discover how you can ethically modify your home mortgage loan and save as much as 47% off your current mortgage payment in as little as 60 days without refinancing visit www.RescuedBySaintJude.com,  For your FREE CD, FREE e-book, and FREE coaching call with Mortgage Modification Expert and Business Man of the Year Billy Alvaro visit www.RescuedBySaintJude.com, Saint Jude’s Mortgage Rescue.

About the Author:

Billy Alvaro is the Countries Leading Expert and Modification Insider. Former CEO of the 136th Fastest Growing Privately Held Mortgage Banks In America, Business Man Of the Year and Top 40 Business under the age 40

Article Source: ArticlesBase.com – What is a mortgage modification and can it really rescue you from the threat of foreclosure?

Canadian Dad Gets 3 Years For Daughters’ Freezing Death

Loan Modification Chapter 13

Question: What can I expect from foreclosure 1 1/2 year after chapter 13?

I filed chapter 13 1 1/2 years ago and have been doing well, making my payments etc. Now, my ARM has adjusted and the bank refused to grant me a loan modification. I am considering foreclosure and am wondering if the process is different since I am already in a 13. Do I need a lawyer? What can I expect. Will it be quicker than the 9-12 months?

Answer: It won't be much different if you are in the Chapter 13. But you didn't mention if the house is included in the Chapter 13 or not. That may change how the bank will go about the foreclosure, but not by very much.

If the house is not in the Chapter 13 plan, then the bank will just file the foreclosure lawsuit, get a sheriff sale date, and attempt to sell the house to pay back the defaulted mortgage. Check your state's foreclosure laws to find out exactly how long this takes.

But if the house is included in the Chapter 13, then once you begin falling behind on payments, the bank will petition the court to have the mortgage dismissed from the bankruptcy plan. Since you wouldn't be making the payments, this would be pretty easy to accomplish -- the Chapter 13 is designed to give you a chance to make the payments on time through the entire plan. If you fall behind, the creditors can have their debt removed and pursue collections again.

In that case, then the mortgage company would begin pursuing the foreclosure process same as normal. They still have to follow the state foreclosure laws and county rules in order to take your home. Nothing would change any of that.

There is just that one extra step of getting the house removed from the bankruptcy payment plan, if you included the house in the Chapter 13. Otherwise, the bank will have to follow the laws that dictate how the foreclosure process will work. And to know how much time you have and other details, you can search online for your state's foreclosure laws.

Hope that helps.
ForeclosureFish

Chapter 7 and 13 - Bankruptcy Attorney in Orange County