If you are facing foreclosure and or other debilitating and caustic financial challenges it is a time for careful reflection because the decisions you are in the process of making are going to have lasting effects on your credit FICO score, your ability to borrow money and the cost of money to you for years to come. There are many attorneys who will strongly suggest bankruptcy to you as an alternative to foreclosure. As a practical matter bankruptcy is not an alternative to foreclosure, it ONLY buys you a little time while having a fairly significant impact on your credit. Trust me, just as soon as your bankruptcy is discharged your mortgage lender will be waiting with a motion to lift the stay on their ability to foreclose on your property. Further, bankruptcy can prevent you from obtaining the employment you would otherwise enjoy. It can also prevent you from having certain security clearances which is very important here in Washington DC, Virginia and Maryland area where the Federal payroll is the largest supplier of employment.
Bankruptcy Attorney Fees, Tucson Bankruptcy Lawyers, Provo Bankruptcy Attorney,
So how does one decide. This is not legal advice but rather a practical look at choices one has facing foreclosure. In my opinion, if foreclosure is the only significant issue you face and you have little or no unsecured debt such as credit cards,medical bills, none secured credit lines or department store credit cards, don't get talked into bankruptcy and don't allow foreclosure. You can Short sell the property and regroup. You'll be able to borrow again in 2 years within the new federal underwriting guidelines. Or alternatively, if you are not terribly upside down in the property you must consider obtaining a REAL forensic mortgage audit. More so if you are in an adjustable rate mortgage. 99 out of 100 of these ARM's are loaded with underwriting violations some of which allow you to rescind your mortgage altogether. (go to the rescission page for more on rescission) A complete forensic analysis of your mortgage gives you leverage on your lender. Here's the deal. If your lender understated the finance charge on your final truth in lending disclosure by more than $35.00 your mortgage is legally non-foreclosable. Finding this violation gives you excellent protection under regulation Z of the Truth in Lending Act. Banks do not want you to know this. They want to be able to obfuscate, procrastinate and humiliate you into giving your last few dollars to them. In my opinion it is so much better to not pay your lender but give the money to a good RESPA / TILA attorney to fight for your rights if you find significant violations within your mortgage. It just makes sense. The lender will have a high probability of making you an offer to lower your rate, fix the rate and potentially give you a principal reduction if your mortgage has a rescissionable violation of TILA. A good attorney can file an injunction or TRO- Temporary Restraining Order to stop foreclosure based on the results of a forensic loan audit and put you in an excellent negotiating posture with your lender. It works, we know because we do it.
Now on the other hand, if you have massive unsecured debt and no ability to repay or if it will take you 10-15 years to pay off your unsecured debt and your home purchase was much more home than you need and you are significantly underwater, bankruptcy is a good option. You can short sell it while in bankruptcy in most cases. Bankruptcy doesn't carry with it the meaning or social consequences that it once did in the wake of this credit crisis. The lenders know that their own policies created the sub-prime buying frenzy that resulted in the economy we now face. It was in all probability their fault not yours. Further, bankruptcy will cause your cost of money to be higher in the foreseeable future but it will not prevent you from borrowing. Many of our clients report getting credit card offers and mortgage fliers just months after their bankruptcies are discharged.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Bankruptcy Chapters
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment