by jeffreyb on January 23, 2010
I think anyone who might be interested in keeping their house should explore Chapter 13 as an option before deciding to do a short sale or let the house foreclose. In a Chapter 13, we can take the payments that you are behind on and put them into a payment plan that will work for you. If you are in a position not able to make the future mortgage payments on your house, Chapter 13 may not be the best answer.
A short sale is when the lender agrees to take a lower price for a house than the amount owed to the lender. The main advantage of a short sale is that it protects your credit score from the damage of a foreclosure A short sale might be a good option for someone whose only debt problem is a house that can’t be sold for the amount owed. People who owe credit card debt, medical debt, car debt, and other types of debt should explore Chapter 13 and Chapter 7 before making a decision to short sale.
Amy Cochran, a short sale specialist from Cartersville, says that one of the most common mistakes she sees people make after they fall behind on house payments is that they move out of the house before the mortgage company takes any action against the house. When a house is empty, it is much more difficult to get a short sale completed.
It can’t hurt to explore all options. Weigh the pros and cons of each option before making your decision.
by jeffreyb on November 17, 2009
The answer to this question is maybe. If you have a foreclosure scheduled against you, you should file Chapter 13 to stop the foreclosure and save your home. I have had so many clients where someone from the mortgage company called and told the homeowner that they would try to work something out to stop the foreclosure Nothing got worked out, and they lost their home. Ask yourself this question, “If the mortgage is willing to work with me, why did they file the foreclosure action against me in the first place?” If your mortgage company says they are going to call off the foreclosure, GET IT IN WRITING before the foreclosure date. If you are considering Chapter 13 to the stop the foreclosure, call me today at 888-832-8249 for your free consultation. We need time to get your paperwork prepared. Don’t wait until the last second.
by jeffreyb on November 16, 2009
If someone tells you to pay them money so that they can “renegotiate your loan,” don’t do it! There are so many scams. Speak to your mortgage company directly. You don’t need to pay anyone to help you with any type of loan modification. Go to the Federal Trade Commission website and read all about the foreclosure scams. Call the FTC at 888-HOPE-NOW.
If you would like to learn how Chapter 13 /a> can stop the foreclosure of your home, call me today at 706-295-0030.
by jeffreyb on November 15, 2009
If you file Chapter 13 or Chapter 7, the answer is never. Creditors can’t sue you in a Chapter 13 and a second mortgage holder can be wiped out in a Chapter 7 if you are surrendering the house.
If you do not file Chapter 13 or Chapter 7, the answer to this questions is……it depends on the company and how much money the house is sold for at the auction on the courthouse steps. If the house sells for enough money to pay all of your first and second mortgage, you are in the clear. This almost never happens in real life. A more likely scenario is that the house gets sold for enough money to cover the first mortgage holder but the second mortgage holder gets nothing. Usually, the first step for the second mortgage holder is to try to work out some kind of payment with you. If this does not work, they will sue you. After they get a judgment against you, the next step is to garnish your wages. In addition to garnishment, they can use the judgment to seize any money in your bank accounts.
If you have any questions, please call me at 888-832-8249 for your free consultation. Nothing in this posting is intended as legal advice. If you want free legal advice, call me.
by jeffreyb on November 10, 2009
Yes. While a second mortgage holder may have the power to foreclose, they almost never take this course of action unless there is a significant amount of equity in the home. In order for a second mortgage holder to foreclose on your house in Georgia, they must first pay off the first mortgage holder. Most second mortgage companies are not willing to take the risk of paying off the first mortgage and then failing to recoup their investment at the sale on the court house steps. With the current depressed values of real estate, I don’t foresee second mortgage holders conducting foreclosures anytime soon.
If a person fails to make payments on their second mortgage but continues to pay the first mortgage holder, the second mortgage holder can sit back and wait for the first mortgage holder to be paid off. After the first mortgage is paid off, the second mortgage holder assumes the first position and can then conduct a foreclosure
Chapter 13 is a great tool for catching up past due mortgage payments. Call me today at 706-295-0030 for your free consultation so that we can discuss your options.