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BANKRUPTCY
Don’t file bankruptcy to stop foreclosure!
What exactly is bankruptcy?
Bankruptcy is a federal court process designed to help people eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as "liquidation" or "reorganization."
Will filing for bankruptcy protect me from creditors' efforts to collect what I owe?
When you file bankruptcy, an "automatic stay" goes into effect. The automatic stay prohibits most creditors from taking any action to collect the debts you owe them unless the bankruptcy court lifts the stay and lets the creditor proceed with collections.
What is the difference between Chapter 7 and Chapter 13 bankruptcy?
In Chapter 7 bankruptcy, you ask the bankruptcy court to discharge most of the debts you owe. In exchange for this discharge, the bankruptcy trustee can take any property you own that is not exempt from collection, sell it, and distribute the proceeds to your creditors.
In Chapter 13 bankruptcy, you file a repayment plan with the bankruptcy court to pay back your debts over time. The amount you'll have to repay depends on how much you earn, the amount and types of debt you owe, and how much property you own.
What might I lose if I file for bankruptcy?
• You may be able to exempt up to $17,425 of your homes equity. Some states have no homestead exemption; others allow debtors to protect all or most of the equity in their home.(this is only an estimate and to please consult a local Bankruptcy Lawyer to discuss your individual situation)
• Insurance. You usually get to keep the cash value of your policies.
• Retirement plans. Pensions which qualify under the Employee Retirement Income Security Act (ERISA) are fully protected in bankruptcy. So are many other retirement benefits; often, however, IRAs and Keoghs are not.
• Personal property. You'll be able to keep most household goods, furniture, furnishings, clothing (other than furs), appliances, books and musical instruments. You may be able to keep jewelry only worth up to $1,000 or so. Most states let you keep a vehicle with more than $2,400 of equity. And many states give you a "wild card" amount of money -- often $1,000 or more - that you can apply toward any property.
• Public benefits. All public benefits, such as welfare, Social Security, and unemployment insurance, are fully protected.
• Tools used on your job. You'll probably be able to keep up to a few thousand dollars worth of the tools used in your trade or profession.
• Wages. In most states, you can protect at least 75% of wages that you have earned but not yet received.
How Creditors Can Get Around the Automatic Stay
Usually, a creditor can get around the automatic stay by asking the bankruptcy court to remove ("lift") the stay, if it is not serving its intended purpose. For example, say you file for bankruptcy the day before your house is to be sold in foreclosure. You have no equity in the house, you can't pay your mortgage arrears, and you have no way of keeping the property. The foreclosing creditor is apt to run to court soon after you file for bankruptcy, to ask for permission to proceed with the foreclosure - and that permission is likely to be granted.
Will bankruptcy stop a foreclosure?
Yes and No… A home is an asset usually secured by a deed of trust. The mortgage company is entitled apply to the court for relief from the automatic stay, the order preventing creditor action by virtue of the bankruptcy. Depending upon several factors, you may be able to prolong a foreclosure until you have received your discharge from bankruptcy. Usually, to keep a home that is in foreclosure you will have to make a deal with the Mortgage Company. This is the key, you still must work something out with the Mortgage Company to repay the past due amount. This is why we say filing for Bankruptcy is like putting a band aid on a bullet wound… it may help you at first but major surgery is still required.
The Bottom line is that Bankruptcy may buy you a small amount of time but negotiations will still need to be made with the Mortgage Company to enable you to keep your home. Most people who file Bankruptcy to save heir home from Foreclosure wish they had not because in most cases they are in a worse position that when they started. Filing Bankruptcy removes your leverage and places your fate in someone else’s hands. Your best option is for you to stay in control, and allow AFS work something out for your prior to filing.
Pros for filing Bankruptcy to Stop Foreclosure
• The Foreclosure proceedings will be temporarily suspended.
Cons for filing Bankruptcy to Stop Foreclosure
• There will be a bankruptcy on your record for 10 years.
• The Mortgage Company can work around the Bankruptcy and still Foreclose.
• You lose any leverage and control you once had.
• A deal must still be worked out with the Mortgage Company to repay the past due amount.
• If you are 1 day late on any trustee payments your case "may" be dismissed, the stay will be lifted and you will be back in Foreclosure.
• GTC HSP&FS can negotiate on your behalf with the Mortgage Company to keep your Home from Foreclosure and get your loan back in good standing.
We are not attorneys and in no way are giving you legal advice. We are only attempting to explain Bankruptcy and how it may affect Foreclosure. Please consult a local attorney to discuss your case.
DON´T FILE BANKRUPTCY! GIVE US A CHANCE FIRST!
WHAT OUR SERVICES CAN DO FOR YOU:
Stop or Avoid Foreclosure Help?
Our foreclosure specialists will help work out a plan to help you stop foreclosure or avoid foreclosure that fits your financial circumstances. We will develop a strategy that you will approve to stop foreclosure and save your home. You will be very happy with our results when we are finished helping you avoid foreclosure.
"Don't worry about what's ahead. Just go as far as you can go - from there you can see farther."
According to statistics, 10% of mortgages in America are in home foreclosure. The Mortgage Companies are even more eager and willing to work with us because they are being overwhelmed with Mortgage Foreclosures. We know the home foreclosure and bank foreclosure process inside and out and they are eager to work with us because we make their jobs easier. We know what forms they require to stop foreclosure, and when. Our documents are standardized to comply with the format used by each Mortgage Company, which makes the correspondence with them seamless. In return, the mortgage companies appreciate our expertise and negotiations run smoothly.
Our Foreclosure Specialists keep our Database current with all major Mortgage Companies.
Our foreclosure specialists understand what your Mortgage Company requires to avoid foreclosure or stop foreclosure and what it takes to get a mortgage workout approved. Below is a list of Major Mortgage Companies we routinely work with and we are ready to work with you to stop foreclosure on your home.
ABN Ambro, American Servicing Company , Aames Home Loans , (AMC) Ameriquest Mortgage Company, Amerian General Finance , Aurora Loan Services , Bank of America , Beneficial , Bank One, Cendant, Cenlar, Centex, Charter One, Chase Home Finance, Chase Manhattan Mortgage, Champion, Citi Financial, Citi Mortgage, CONSECO, Countrywide, Dietech, Dovenmuehle Mortgage, Equity One, EMC Mortgage, Everhome, Fairbanks Capitol, First Franklin Loan Services, Franklin Credit, Fisrt American, Fisrt Capital, Freedom Mortgage, GMAC, Greentree, Greenpoint Mortgage, GTC Mortgage, Homeside, Homecomings Financial, HomEq Servicing, HSBC, Huntington, Indymac Bank , Irwin Mortgage, Key Bank, Litton Loan Servicing, Midland Mortgage, Mortgage Lenders, M&T Mortgage, Nation Star Mortgage, Nation City Mortgage, New Century Mortgage, North American, Novastar Financial, Ocwen Loan Servicing, Olympic Servicing, Option One Mortgage, PCFS/Provident, PHFA, PHH, Pricipal Residential, RBMG, Regions Mortgage, Rural Housing, Saxon Mortgage, Select Portfolio Servicing, Specialized Loan Servicing, Standard Federal, Tayloy Bean Whitaker, Third Ferderal, TIB, Tier One, Union Planters, US Bank, Vanderbilt Mortgage, VA, Wachovia , Washington Mutual, Wells Fargo, Wilshire Credit, World Savings
Don't worry if your Mortgage Company is not listed. This is only a sample of the Mortgage Companies we routinely work with. We have provided a link to our Mortgage Resource Center to learn much more about some of these Mortgage Companies. Please click on them to learn more and to give us your opinion on these companies.
How can we help you…
We can give you breathing room.
• Sale Postponements
• Stopping Foreclosure Evictions
• Solving 2nd Mortgage Issues
• Credit Help
But the help just doesn’t stop there…
We can save your home.
Our foreclosure specialists will use one of these strategies or perhaps a combination of workout plans to develop your personalized strategy to stop foreclosure:
• Reinstatement
• Repayment Plan
• Loan Modifications or Loan Restructuring
• Loan Refinance
• Loan Forbearance
• Partial Claim (FHA Loans only)
• Short Sale
• Deed-in-lieu of Foreclosure
FORECLOSURE QUESTIONS
What Should I do when I get behind on my Mortgage?
1. Don't ignore the phone calls and letters from your lender. This is the best way to wake up to a knock from the Sheriff telling you to vacate the home. Take this matter very seriously and work to resolve the problem as quickly as possible. Keep track of all correspondence you receive for later reference.
2. Stay in your home. You may not qualify for foreclosure help if the house is vacant. Your home, if proved vacant, can be seized. Stay in your home!
3. Contact AFS to discuss what the best foreclosure solutions are for you. We will negotiate on your behalf with the Mortgage Company to get your loan back in good standing. We understand the system, the foreclosure laws and the chain of events necessary to help you keep your home out of foreclosure. We will gladly walk you through them in a non-threatening way.
Foreclosure Timeline – Once you become 90 days past due the Mortgage Company will typically issue a NOD (notice of Default). After you receive this notice they will hire an attorney and begin the Foreclosure with the Court system. The Foreclosure must follow a strict procedure laid out by your State laws. Eventually the house will be sold at auction if nothing is done to stop the Foreclosure. Below are typical time frames between the NOD and the actual sale date for the property. These time frames are typical and may vary depending on your actual situation. |
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What are my options?
1. Reinstatement - Pay the Mortgage Company all of the back payments to bring your mortgage current. This option is rarely attainable. The Mortgage Company will add late fees and Attorney fees on top of your back payments making this amount much more than people are able to come up with.
2. Workout - We can negotiate with your Mortgage Company to bring your loan back in good standing. There are many options available to us to get a work out approved. Some examples are as follows:
a. Forbearance - We will be able to arrange a payment plan based on your financial situation. This is mostly used in the instance of a tragedy or temporary loss of employment.
b. Loan Modification - We may be able to adjust the terms of the loan to meet your financial situation.
c. Partial Claim - You may qualify to have the repayment amount applied to the end of the current loan and resume normal payments.
3. Refinance - We have established partnerships with very reputable lenders who can give loans on mortgages that are in foreclosure if there is enough equity available.
4. Sell Your Home - You may simply sell your home before the Foreclosure Sale Date. Sometimes the home owner is unable to sell the home outright at the desired sale price and this is not an option. We may be able to negotiate a Short Sale on your behalf with your Mortgage Company. In this instance the Mortgage Company may take less than what you owe on the loan to avoid a lengthy and costly foreclosure process.
5. Deed-in-lieu of Foreclosure - We can arrange for you to simply give the home back to the Mortgage Company and walk away with a clean slate.
6. Bankruptcy - This is a last resort. This will only save your home temporarily. If you miss one payment during this process the lender will put you right back into foreclosure. This is like putting a band aid on a bullet wound... we will still need to come up with a permanent repayment solution to get your house payments back on track. We can put you in touch with an Attorney to file the necessary paperwork.
7. Foreclosure - You may elect to allow the home to be entered into mortgage foreclosure. This is the most damaging to you. The Mortgage Company will take your home and all of your equity. If there is no equity they may come after you to pay the shortage or “deficiency”. This is also the most damaging to your credit and your ability to acquire another home loan.
It is important to note that the Workout Options available to you may be limited dependent on the following factors:
1. The type of loan that you have
2. Which investor holds your note, and
3. Which mortgage insurance company insures your loan (if you carry mortgage insurance on your loan)
Why use us?
Unlike other foreclosure solution firms, we are not trying to buy your home when you are vulnerable and in need of help. We will analyze your situation and offer proven foreclosure help to save your home. We will negotiate with your Mortgage Company to stop foreclosure, save your home and resolve your case. We call ourselves “Specialists” because we SPECIALIZE in helping people get out of foreclosure. Our Name, American Foreclosure Specialists, is the name that you can trust.
Visit our testimonials page to see what our past clients have to say about us.
What is the charge for your firm’s services?
A consultation with one of our professional foreclosure advisers is always free. We will evaluate your foreclosure situation and be able to inform you of the costs for any additional services your particular situation requires. Often, our consultants will put you in a direction that will be totally free to you. However, if you require our full services, our fees begin at $295.00 and can go up from there depending on your situation and your needs. Our services are very inexpensive in relation to the value of your home. The one thing you need to decide is how much is your home worth to you? What price would you pay to save your home?
How do you get a Deed-in-Lieu of Foreclosure?
In Deed-in-Lieu of Foreclosure, we can negotiate with your lender to voluntarily give your property back to your Mortgage Company and your debt or deficiency is often forgiven. This won’t save your home, but it will help you with your chances of getting another mortgage loan in the future and it will help you avoid the lengthy legal process of foreclosure. Although it is a negative strike on your credit rating, it is less harmful than a mortgage foreclosure.
What does Foreclosure Forbearance mean?
In Forbearance, we are allowed to delay or reduce payments for a short period, with the understanding that another option will be used at the close of that time to bring your account to a current status. Your lender, if in agreement, will then temporarily cease legal actions. Lenders may agree to combine your Forbearance with Reinstatement or a Repayment Plan if you know you can provide the needed funds to bring your account current by a specific date. This plan works for people who have just experienced a sudden living expense increase or income loss. We will negotiate with your lender to explain this hardship and hopefully get you the time you need to readjust your spending and recover financially.
What are the right foreclosure solutions for me?
Our consultants look at every case individually based on your financial situation, past and present. We want to stop your foreclosure, keep you in your home and establish a financial plan that will keep your credit in best standing and also at a level that is comfortable for you. We don’t want to give you a band-aid but a permanent foreclosure solution. Although many options exist, the only one that is right for you is the one that best fits your financial situation.
What is a Foreclosure Loan Modification plan?
The term “loan modification” refers to a readjusting of your current mortgage. If you can currently make your regular payment, but you can’t catch up with the past-due amount, we will negotiate with your lender to fold any past-due amounts, including interest and escrow, into the unpaid principal balance. This new amount will be re-amortized over a new period of time. Or, if you are unable to make payments at this rate, we will negotiate with your lender to extend your loan for a longer period of time, modifying the loan amount to a more affordable level. A Loan Modification or Loan Restructuring will change your existing mortgage note and give you a fresh new start in managing your home. Your account will be brought up to date immediately.
What is a Refinance Mortgage Foreclosure?
Depending on your income, credit report, value of your home and the amount of your equity, we can negotiate with a new lender to refinance your existing mortgage. Although this might be difficult to secure new financing with a default on your existing mortgage, if you have enough equity in your home, this option might be attractive to a new lender. We have several lenders who we deal with regularly that are willing to give people a second chance.
Although this option may likely create a loan with higher interest rates, a sizeable upfront fee and a longer time for pay-off, it may be the best option for you. With your home refinanced, you will become immediately current, the foreclosure will cease and you will be able to enjoy your home. |
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www.gtcmortgage.com
infogtcsolutionforyourhome@gtcmortgage.com - info@gtcmortgage.com
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