Foreclosure Article
Will bankruptcy save my home from foreclosure?
WILL BANKRUPTCY SAVE MY HOME FROM FORECLOSURE?
What will bankruptcy do?
When bankruptcy is filed it provides an automatic stay in foreclosure proceedings. This means that a trustee sale cannot be held so long as the bankruptcy is filed before the trustee sale starts.
Do I automatically get to keep my home if I file bankruptcy?
No. Bankruptcy does not allow the homeowner/borrower to keep their home while also ending their obligation to pay the home loan. Bankruptcy may be tool to provide temporary or long term assistance to the borrower but it’s a strategy that should be pursued after consulting with an attorney.
How can bankruptcy help?
There are a couple of ways a bankruptcy might help, and may be recommended by your attorney.
The effect of filing a bankruptcy grants an automatic stay in debt collection efforts including foreclosures. An automatic stay basically means all collection, repossession, and foreclosure efforts are put on hold until the bankruptcy process is complete. This period may allow your attorney to work through your foreclosure case more thoroughly or give her or him time to work something out with the lender.
Another way a bankruptcy might be helpful is that it may allow certain debts to be discharged, meaning your obligation to pay ends, or it may reorganize your debts into a more manageable payment. This may help by freeing up money so that you can more easily make your monthly payments.
Is there a downside to declaring bankruptcy?
Bankruptcy may negatively impact your credit score however at the point most people are considering bankruptcy, their credit scores have already taken a hit. There may be other cons to pursuing the path of a bankruptcy but they will depend on other factors that your attorney will discuss with you. Remember no one case is the exactly the same as another.
Bankruptcy is often made more difficult when mistakes are made in the process. Often people will file before meeting with an attorney and overlook important facts or issues in their case. Other common mistakes occur when individuals, in anticipation of filing bankruptcy, make additional purchases or attempt to pay off certain debts to maintain relationships with whoever lent them the money. This should be avoided until consulting with an attorney because certain purchase may make the bankruptcy look fraudulent, and payments made can be undone through the bankruptcy process - adversely affecting both the borrower and the person or business that lent the money. Meeting with an attorney, even if it’s just for a brief consult could prove instrumental in making the process smoother, less stressful, and help avoid these and other pitfalls.
Where can I get more information about bankruptcy?
The US Bankruptcy Court of Arizona has vast amounts of information online as well as a help center and hotline to answer questions. The hotline number is 866-553-0893. However, individuals should also contact legal aid, especially if they are also dealing with foreclosure related issues or at risk of foreclosure. To apply for legal assistance use the Access To Justice Online Intake System.
Where can I find legal help with a foreclosure?
Individuals faced with loss of a home through foreclosure/trustee sale or dealing with issues related to a foreclosure can apply for free and reduced fee legal services through the Access to Justice Online Intake System, the link is also available on the top right of AZLawHelp under the “LegalLEARN” section. Individuals may also contact legal aid directly, however due to high call volume there may be long wait times on the phone and the phone system may disconnect calls when overwhelmed. To find the legal aid agency serving a particular county in Arizona, select the desired county in the drop-down under the section titled “FIND FREE LEGAL HELP” on the right column of AZLawHelp.
Comments:
QUESTIONS
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Since 2010 I've lived at a home in mesa az. Recently my friend gave her home back to bank/ reverse mortgage and lien on it from IRS.She moved out to Missouri in july or first of aug 2013.I still am in the home whike she knew this she broke thru a window and hsrassed me.I called police they said she has a right to come in and change the locks.what legal rights do I have I pay utility bill at the resident.the mortgage company said it is in foreclosure so I need to know my rights
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A sibling had a piece of land that was sold in a trustee's sale in June 2016 . It was 2.55 acres and had no single family residence. I am clear that it doesn't fall under the deficiency exemption because of the size of the lot and no home. Since it's been over 90 days, is it safe to say there will be no legal recourse? Can they still send the debt to ordinary collections agent? Thank you
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I bought a condo in July 07' using funds from a City of Phoenix bond program. I was unaware of a stipulation stating that the owner must occupy the unit for the life of the loan. I was laid off from my employer and I have had to relocate to Texas for work. Now the mortgage company is stating that they can accelerate the loan pay-off requiring me to pay the loan in full. I pay my mortgage payment each month, how can they do this?
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I have a first and second mortgage on my home. The value has plummetted by 35% since I bought it 2 years ago. How can I submit for a loan modification program if I have 2 loans? My only other option is foreclosure. What happens if I have to default on the 2nd, but try to stay current on the 1st? I need help!
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In 2003 I losa a home to foreclosure.There was over 40,000 of equity in my home. After all debts & liens were paid off,10,000 in excess proceeds was put with the State Treasury of Arizona.How do I go about getting my money back from them?
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I rented a property and signed the lease april 2012. I moved in june 2012, I recieved notice the property was going to be sold in auction in october, 2012. can i recover my deposit
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AZ dept of Housing sent us to you to file a complaint against Bank and Mortgage Company (Proper business names redacted). How do we mail or email our five page complaint to you? (Personal information redacted)
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I agreed to purchase a home I believed was owned free and clear by the owner with owner financing. I later learned the owner did not own the home free and clear, and when costly repairs come up he refused to help defray the costs. Was I protected under the tenant landlord act and can he foreclose as he is threatening? I have already moved out and found a new place to live.
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WHAT IS THE LAW THAT STOPS EVICTION BY BOTH THE NEW OWNER OF THE FORECLOSED EQUITABLE TITLE AND THE SERVICING BANK?
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The home I'm renting is about to be auctioned....will I have to leave immediately or do I have 30 or 90 days?
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