Treasury’s New Attempts To Help Foreclosure & Loan Modification Problems

The Treasury announced more attempts to help borrowers in foreclosure or close to foreclosure including payments toward relocation and short sales, as well as additional help for unemployed borrowers.

It remains to be seen whether these changes will help fix the foreclosure and loan modification problems, including problems facing borrowers going through bankruptcy.

For an overview of these changes, you can read more below:

http://www.nacba.org/files/email/Supp_Dir_10-02.pdf

California Bankruptcy Attorney Uses Chapter 11 to Stop Foreclosure

A bankruptcy filing has the effect of placing a court order stopping foreclosure and eviction. It gives homeowners time to try to work out a solution to their financial problems. Loan modifications are few and far between these days and do not guarantee the bank won’t sell the home during the process.

Many people do not realize that Chapter 7 and 13 are not the only alternatives when it comes to filing for bankruptcy. Chapter 11 is a reorganization like chapter 13, but can be used for individuals to accomplish foreclosure relief, debt reorganization, and lien stripping that essentially results in principal mortgage reduction. A homeowner’s primary residence 2nd mortgage can only be lien stripped if the home’s value is less than what is owed on the 1st mortgage. Rental or investment properties 1st and 2nd mortgages can be lien stripped in certain circumstances in Chapter 11.

Even in Chapter 13, a homeowner can benefit by removing the 2nd mortgage, resulting in more available income.

Consult with a bankruptcy attorney to review your options. Many, including our firm, provide free consultations to see if bankruptcy may be the right option for you.

http://www.bankruptcylawyerla.net

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How to file bankruptcy – consult a bankruptcy attorney

Record numbers of bankruptcy cases are dismissed by the court as they are not being filed properly. Both local and federal rules of bankruptcy procedure require compliance with filing deadlines and format of forms, schedules, and other documents. People want to avoid the costs of hiring an attorney, but they end up wasting the $300 filing fee and time involved by filing improperly only to have the court dismiss the case 14 to 30 days after filing.

If you are trying to rearrange your finances and get back on your feet, an experiences bankruptcy attorney can help you make sure you handle your case properly. Realize that you are eliminating debts and monthly payments, so an investment in your financial future is worth the cost. Most bankruptcy lawyers are willing to work with you to figure out how to pay the costs involved for their advice and representation.

In addition, a bankruptcy lawyer can explain advantages that you may be able to take advantage of, such as eliminating second mortgages on your home, saving your home from foreclosure, and other pieces of advice and counseling.

http://www.bankruptcylawyerla.net