Stopping Home Foreclosure with Bankruptcy

Bankruptcy Will Stop Your Sale - At Least For NowFor $395, you can stop your sale- at least that is what the ads say. You are about to find out how bankruptcy can be good or very damaging.

Bankruptcy will stop your foreclosure sale. It's a fact. However, filing bankruptcy for the sole purpose of stopping foreclosure is not what bankruptcy is for. And anyone that does this to avoid foreclosure is in violation of bankruptcy laws. Here is some basic information on bankruptcy.

What Is Bankruptcy?

There are two types of bankruptcy, Chapter 7 and Chapter 13. Filing for a Chapter 7 bankruptcy means you are asking the courts to completely discharge your debts. Filing for a Chapter 13 bankruptcy is when you set up a court- approved plan to repay your debts.

Now, the two types of bankruptcy:

1. Chapter 13: Chapter 13 bankruptcy is a repayment plan that will restructure your arrearage. More than 95% of all Ch. 13 bankruptcies filed fail. When you file the Ch. 13, this will postpone your foreclosure sale until the meeting of creditors also known as a 341 meeting. This usually takes place 60-90 days after you file. Also, when you file a Ch. 13, you are paying for 2 attorneys, your attorney to file and another to take payments and disperse the money to the creditors. At the meeting, you will have to face your creditors. Many times this can be very intimidating. The bank will ask for their money or for the judge to give them a relief of stay. The relief of stay is asking for the foreclosure to continue. If granted the attorney will re-start the foreclosure process over with a set foreclosure sale date around 30-45 days later. IF you do not have some money for reinstatement for the Mortgage Company or bank, the judge will likely grant the relief of stay. As you can see, bankruptcy will stop your sale, but it is only temporary. Now, you have to deal with the foreclosure process all over again plus now your credit is in worse shape than before because you now have a filed bankruptcy that is showing up on your credit file.

2. Chapter 7 - A Ch. 7 bankruptcy is when you request complete debt relief. When you file a Ch. 7, you are trying to receive a discharge from all your debts that you list in your bankruptcy. If you get a discharge, this will relieve you of all your debts that are listed. Now, the bank can still get a relief of stay with a Ch. 7 Bankruptcy. Even if you receive a discharge, the bank can still take the home through foreclosure. When you get a discharge this relieves you from the debt and the responsibilities of the debt, however the Mortgage is attached to your house as a protection for the bank and their interest. Therefore, the bank can foreclose even if you have received a Ch. 7 discharge.

Bankruptcy will destroy your credit rating, therefore be careful when you speak with Bankruptcy Attorneys, this may be the only option that they know of. In other words, when you talk to someone that does bankruptcies they will influence you to file bankruptcy, when you talk to a mortgage officer or bank official, they will want to influence you to get a loan because that is what bankers do, if you talk to an investor they want to buy your house, because that is what investors do, SO be careful and look out, find someone that does not have an agenda that can give you strategic advice regarding your current situation. The rate of people that declare bankruptcy for a second time is as much as 50%. In some instances, bankruptcy may be a good choice, but all too often it causes more stress and problems for the individual. So try to resolve without the use of bankruptcy.

Jimmy Cox http://www.365homenet.com

More than 40 states signed onto a proposed $25-billion deal with major mortgage servicers over faulty foreclosure practices. New York, Nevada and Delaware joined California in holding out for better terms.

More than 40 states signed onto a proposed $25-billion settlement with major mortgage servicers over faulty foreclosure procedures, but California, New York and other key states were still not among them.

California has until Monday to share in a multi-state deal with banks to obtain mortgage relief and reforms. Atty. Gen. Kamala Harris, who walked away from talks last year, says the door remains open.

With a Monday deadline at hand, California officials have resumed direct talks with the Obama administration about joining a multibillion-dollar, multi-state mortgage settlement with the nation's largest banks, a source said Sunday.

The talk show host pays $12 million for the 4,088-square-foot house with four bedrooms and four bathrooms. The ocean-view home sits on 1.26 bluff-top acres with beach access.

In one of the more talked-about transactions in town, actors Brad Pitt and Angelina Jolie have sold their Malibu beach house to daytime host and comedian Ellen De Generes for $12 million.

The four-bedroom, five-bathroom house built in 1920 for industrialist James Wigmore lists for $2,875,000.

A decorative cast stone entrance opens to this restored Spanish Colonial Revival-style house in Pasadena's South Orange Grove area. Built in 1920 for industrialist James Wigmore, the house retains such original details as coffered wood ceilings and arched doorways.

They don't believe they can sell their property for what it's worth, so they're spending money on making their homes more comfortable.

Do you fit any of these descriptions?

A biennial research report by the National Assn. of Realtors indicates that a handful of real estate agents and brokers and their clients either don't know the law or don't care to follow it.

When it comes to lawsuits, real estate agents and brokers tangle mostly among themselves.

The president aims to help about 3.5 million people with good credit who are unable to refinance at historically low rates because their homes are worth less than their mortgages.

 

The White House hopes to help millions of homeowners lower their monthly mortgage bill with a $5 billion to $10 billion plan to set up a streamlined refinancing program for people who are current on their payments.

The Standard & Poor's/Case-Shiller index of 20 large U.S. cities fell 1.3% in November from October as foreclosures continue to drag down the housing market.

Three straight months of home-price declines in the biggest U.S. cities showed that foreclosures remain a significant drag on a housing market that is entering its fifth year of deterioration.

L.A. Clipper Chris Paul may be quick down the court, but he moves pretty fast when it comes to buying multimillion-dollar real estate too.