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Archive for the ‘Foreclosure Defense’ tag

Foreclosure Defense: Saving Your Home

March 16th, 2015 at 2:17 pm

Texas foreclosure attorney, Texas bankruptcy lawyer, San Antonio foreclosure lawyer,Although the housing market is showing some signs of recovery, millions of Americans still struggle with their monthly mortgage payments. Texas is a non-judicial foreclosure state, so in most cases, the lender does not need a court order to foreclose on a residential mortgage. As a result, most Texas foreclosures are processed in under a month, leaving limited time for foreclosure defense.

Most South Texas families have very little savings, so if they fall even one or two months behind on their mortgage, it can be very difficult to catch up. Although most lenders participate in government-sponsored loan modification programs, such assistance may not come in time to save your house, and may not even come at all.

What Bankruptcy Can Do

If you received a foreclosure notice, chapter 7 or chapter 13 bankruptcy offers both short- and long-term solutions to your debt problems.

  • Automatic Stay: The instant you file, Section 362 generally goes into effect. Lenders cannot take any adverse action against you without special permission from the bankruptcy court. Even if your property is scheduled to be auctioned off, a bankruptcy filing can save your home. You do not have to prove anything in court, such as fraud or unfair lending practices. All you have to do is file.
  • Protected Repayment Period: In a chapter 13, you have either three or five years to catch up on your mortgage payments. The lender must accept your terms, as long as the trustee approves your repayment plan. In nearly all cases, the automatic stay remains in effect through the entire repayment period.
  • Lien Stripping: You may be able to remove a second mortgage. For example, a number of people financed a residence with an 80/20 mortgage. If your home’s value has dropped below a certain threshold, the bankruptcy court may classify a second mortgage as “unsecured” and discharge it.
  • Cram Down: In some instances, you may be able to reduce the amount of debt to the fair market value of the asset. So, if you owe $200,000 on a home that is only worth $150,000, the judge may discharge a portion of the debt.

If the bank still tries to take your home, the judge may refer the matter to mediation, where you will have the opportunity to obtain a loan modification.

Bankruptcy can help you stay in your family home. If you are struggling with unpaid debt, reach out to an experienced San Antonio bankruptcy lawyer today. Call The Law Offices of Chance M. McGhee at 210-342-8400.

What is a Chapter 20 Bankruptcy?

December 13th, 2013 at 3:24 pm

piggy bankA Chapter 7 bankruptcy is a common form of bankruptcy because it excuses the filer from all eligible debts.  It is commonly referred to as a liquidation bankruptcy because debts are eliminated by the sale of property and other assets. Creditors are repaid through the proceeds of those transactions.

A Chapter 13 is also called the wage-earner’s bankruptcy.  If someone is earning an income but cannot keep up with past due payments, then a Chapter 13 bankruptcy can give them time to pay those debts. There is a repayment plan that last from three to five years and is based on each person’s income.

Occasionally there are cases when nether Chapter of bankruptcy is appropriate. While a Chapter 20 bankruptcy is not a term found in the bankruptcy code, it is a common strategy to get a fresh start.  It is the process of filing two bankruptcies right after each other to resolve difficult financial situations.  The approach is filing for Chapter 7 protection and then for Chapter 13.

The Chapter 7 bankruptcy lets you eliminate dischargeable debts which does not include child support, taxes, or student loan debts.  If your debts are too high to qualify right away for a Chapter 13 bankruptcy, the Chapter 7 bankruptcy can eliminate enough to become eligible.  That can allow you to focus the majority of your income on debts that cannot be discharged.

The disadvantages of a Chapter 20 filing is you can’t receive a discharge during the Chapter 13 part of the process.  It is also possible that a bankruptcy trustee will object to your Chapter 20 bankruptcy.  They can claim that your Chapter 13 filing is in bad faith.  If that happens, you will be responsible for providing proof that it is necessary given your situation.

If you are concerned about making your monthly credit card payments or losing your family home, then bankruptcy might be an option for you.  Talking to a legal professional can show the benefits of each Chapter based on your situation.  Contact an experienced bankruptcy attorney in San Antonio today.

The Zombie Title: A New Foreclosure Nightmare

March 21st, 2013 at 8:00 am

foreclosureSince the housing collapse of 2007, foreclosures have been occurring rapidly across the nation.  Banks have been accused of lending to those who should not qualify for mortgages.  There is evidence that they have also been up to other shady practices.  Now, in 2013, there is a new horror in the housing market.

Thousands of homeowners are finding themselves trapped by a zombie title.  A zombie title is when homeowners are legally liable for “foreclosed” homes that have literally came back to life.  Banks issued notice of foreclosure only to later decide that it would be too expensive to reclaim the home, in turn transferring the title back to the homeowner.  It is an action that mirrors how homeowners abandoned their mortgages during the housing collapse.

These titles are becoming more prominent in the foreclosure process.  There is no national database to track these zombie titles but lawyers, housing court judges, code enforcement officials and others involved in foreclosures have noticed the increase.

The fallout is pretty devastating to homeowners who move out of their homes when they receive foreclosure notices.  Years from that event, people are having their wages garnished, their credit destroyed and other efforts to collect for repairs done to their homes that they don’t even live in.

If you receive a foreclosure notice on your home, don’t resign yourself to leaving right away.  Your first step should be to contact a legal professional with a background with fighting against foreclosures by filing for Chapter 13 bankruptcy.  Contact an experienced foreclosure defense attorney in San Antonio to make sure you don’t have a zombie title.

Call today for a FREE Consultation

210-342-3400

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