Too much debt for chapter 13? Sounds odd, right? Technically, you are probably over the debt limits for Chapter 13, per Bankruptcy Code Section 109(e). Let's consider where you go from here. Three Options: 1. Reduce Your Debts (to qualify for 13) You will want professional advice on this one, but it can be possible. Example: If you own two houses and the mortgage debt has pushed you … [Read more...]
Category: Mortgage Default & Foreclosure
In much of the country, property values have recovered. But for property owners, they may still be recovering from the bursting of the real estate bubble. Loans may have matured. Past payments may remain unpaid. The lender may be threatening foreclosure. And negotiating is challenging, to say the least. This blog series is designed to highlight some of the key issues owners currently face, and explore some available solutions. Scroll through our posts to see if your issue is addressed in our blog topics.
Many owners are still behind on mortgage payments, even though the real estate market is rebounding. And lenders continue the march toward foreclosure. Three Ways Bankruptcy Might Be The Solution: 1. Say "Goodbye" to that Underwater 2nd Mortgage. Many property owners have a second mortgage on their property. It was frequently one of the ways to pull equity out without having to … [Read more...]
If you fall on hard times, it may be tempting to use retirement accounts to pay off debts. Unfortunately, this is all too common, and usually a huge mistake. Here’s the problem: Many of those debts you paid could have been wiped out or substantially reduced in bankruptcy. At the same time, so long as your retirement funds are held in a qualified retirement account (such as an IRA, a pension, a … [Read more...]
Even though we are emerging from the recent recession, many property owners are still behind on mortgage payments. With stable income, you may be able to catch up on those payments, if the bank would just work with you. Inability to Cure All Arrears At Once. It is not uncommon for a home owner to be able to make ongoing payments, but have difficulty paying off all previously missed payments in … [Read more...]
Loan Modification Deadend For many property owners, loan modification has been a dead end. Sometimes it is an outright denial. In other instances, the lender simply refuses to make a decision, or transfers the loan to yet another servicer. And if there is equity in your home, the lender have no incentive to work an arrangement with you. At this point, there is a good chance the bank is … [Read more...]