Foreclosure Relief

Foreclosure relief can come in many ways. Paying you mortgage delinquency is the surest strategy. But those behind on their mortgage rarely have the money to make up the arrearage on their mortgage. That’s why they are in foreclosure in the first place. But there are ways to save your home if you are in foreclosure.

Foreclosure does not mean your home has been sold. It means it will be sold if your mortgage can’t be caught up. The foreclosure process starts with the filing of a Notice of Default and Intent to Foreclose. It is a form filed with the county recorder and mailed to the homeowner. If the arrears, or delinquent mortgage payments, are not paid within 90 days, the house will be sold. Foreclosure relief is unavailable after foreclosure sale.

Before the 90-day deadline expires, there are foreclosure relief options. Paying the past-due mortgage is usually not possible. Especially within 90 days. But working with your lender can work. Requesting a modification is a good strategy. Often a modification can put your mortgage arrears at the end of the loan. Doing so can bring your mortgage payments current. It also eliminates the foreclosure sale threat.

Keep your home in bankruptcy

Can you keep your home in bankruptcy? It is a common question posed by potential bankruptcy clients. And the common answer to this question is yes. You can keep your home in bankruptcy.

Bankruptcy laws allow you to protect, or exempt, your property when you file for bankruptcy. You do not have to lose or surrender your possessions in seeking bankruptcy protection from your creditors. This means you can keep your home in bankruptcy and still eliminate your debt. There are limits, though.

To keep your home in bankruptcy there are limitations on the amount of equity you can protect. Depending on your individual bankruptcy situation sought, there are limits on the amount of equity you can have. Typically, you can keep more equity in your home if you are married, are older or even if your income is lower. So, too, the more you own in other forms of property can lessen the amount of equity allowed. cars, cash, and bank accounts are examples of property that may limit the amount of equity to keep your home in bankruptcy. Each individual bankruptcy case is different.

If you can protect, or exempt, all the equity

Mortgage Strip-Off in Bankruptcy

A mortgage is a secured debt. If it is not repaid, the property securing the debt can be taken back by the lender. Typically a foreclosure results when the mortgage is not made. Foreclosures are addressed in other areas of this website. Suffice it to say for this topic, though, foreclosure is the process of selling your home to satisfy the debt you didn’t pay. But a mortgage can also be stripped off in a bankruptcy.

Bankruptcy can stop a foreclosure. It can prevent your home from being sold. If you want to keep your home, you will still have to pay your mortgage even if you file for bankruptcy. But bankruptcy can buy you time. It can allow you the time you need, up to five years, to get current on your mortgage. And as long as you make your bankruptcy payments, your home is protected from your bank or mortgage company.

You can also eliminate, or strip off, a mortgage through a bankruptcy. But you must establish that the loan is entirely unsecured. What this means is that the security, or collateral, for your mortgage loan is no more. Usually such a scenario results

Sacramento Bankruptcy: Foreclosure Basics

If you are facing foreclosure of your home, there are some basics you need to know.

A foreclosure does not mean your home is sold. Your house is still yours. A foreclosure is notice warning you of a mortgage delinquency. If you do not come current with your mortgage arrears (amount you are behind on your mortgage payments), the lender can sell your home to collect what they are owed. But before they can sell your home, they must give you 90 days to catch up on your mortgage.

If you cannot catch up on your payments within the 90 days, you can stop the lender from selling your home by filing bankruptcy. That does not mean, though, you don’t have to pay the delinquent portion of your mortgage if you want to stay in your home. But a bankruptcy can buy you time–up to 5 years–to catch up on your payments and, in so doing, continue to keep your home.

Modifying your mortgage may be an alternative if bankruptcy won’t work. There are a number of government agencies out there to help. KeepYourHomeCalifornia.org is a good one. Just know that if you can’t bargain your