When you are facing bankruptcy, the first and most important decision you must make is:
SHOULD I SAVE OR SURRENDER MY HOME?
This is the critical decision that you and your attorney must make based on the amount of the arrears and your present and future income. Once the decision is made to save the home, there are three main avenues available:
1. Foreclosure Mediation
Under the new Nevada Foreclosure Law effective July 1, 2009, any lender who files a notice of default against your house must engage in “good faith” negotiations with homeowners who request a final mediation. This process allows you and your lender to sit down and try to work out a solution that may allow you to keep your home. Homeowners can save their own home by “electing” to participate in Nevada Foreclosure Mediation Program. The paperwork to participate is sent about the time foreclosure begins (Notice of Default is sent). A homeowner has only a month to participate in mandatory mediation to trigger his/her right by submitting election form and paying $200.
In almost all instances, retaining counsel to attend mediation is worthwhile idea. Your bank will be represented by counsel. I have experience in “Building a homeowner’s case” to establish that you can pay the mortgage if payment or interest is adjusted.
In particular, your Bank will review any “hardship” (changes in mortgage and income). I can help individuals show that their circumstances justify having their payments adjusted through mediation.
The Mediator is a retired judge or practicing attorney. All of the mediation program’s mediators genuinely want to help.
I have had success with Foreclosure Mediation option. One reason is that the Bank is required to participate in “good faith”, i.e. If Mediator does not find Bank participating in “good faith”, then the Bank would have to get a Court Order to complete the foreclosure process.
Mediation is the fastest way to resolve mortgage problems. I understand that it is much easier to sleep and relax when your house delinquency is resolved.
Is is in the best interest of the bank to retain your mortgage as an asset. You need an experienced negotiator. Contact The Law Office of Corey B. Beck, Esq. For an appointment (702) 678-1999
2. Loan Modification
Loan Modification is a slower process, but it can provide more relief when a homeowners income/expense fit within the Making Home Affordable “MHA” or “HAMP” guidelines. In particular, a Modification makes sense when new payment will be between 31%- 38% of gross income. Typically, a Bank will adjust payment/interest when there is a “hardship”. A hardship can include many things such as mortgage adjusting and homeowner’s income decreasing.
The goal of loan modification is to provide the negotiator (similar to underwriter) with all information to modify loan.
Retaining an attorney is recommended because an attorney has more credibility than a non-lawyer submitting financials. Moreover, because I am experienced with this area of law, I can explain in simple terms why Bank should modify or adjust specific loan.
Most of conventional mortgage companies will initially enter into a Trial period (preliminary approval). If all payments are made and documentation is complete, then final loan modification documents are submitted.
Contact The Law Office of Corey B. Beck, Esq. For an appointment (702) 678-1999
If the problem that caused your mortgage payments to fall behind is other payments such as second mortgage and credit card payments, or if you experienced a temporary loss of income then filing a Chapter 13 bankruptcy is a solid way to “catch up” on your payments and save your home.
If you have Second or Third mortgages, but little or no equity, these debts can be converted to unsecured obligations, and paid of at a fraction of their amount along with other unsecured debts, such as credit cards, by filing a Chapter 13 Bankruptcy.
When you file a Chapter 13 bankruptcy, mortgage arrears can be caught up over a 5 year period, if necessary. The bottom line is that if temporary illness or unemployment caused the missed payments then Chapter 13 Bankruptcy is a “good” cause of action to cure arrears, and save your house.
It is important to begin this process right away to prevent the accumulation of fees by the lender as the bankruptcy process steps forward.
CALL (702) 678-1999 now!
If the problems is that your mortgage payment is too high for the money you earn then the decision becomes more involved. Unfortunately, this frequently happens when Adjustable Rate Mortgages (ARMs) reset to a higher than expected payment.
Now the decision depends on the amount of present and future equity. If you have a large Negative equity, a Chapter 7 Bankruptcy will allow you to surrender your house, and all liability for a “Deficiency Claim” (the amount that the Loan exceeds the sale price) can be wiped out.
CALL (702) 678-1999 now!
It’s YOUR CHOICE, but you need the best help in making that decision.
You need an attorney with the MBA training, knowledge and 14 year’s experience of Corey Beck. Put Corey Beck’s skill and insight to work for you!
CALL (702) 678-1999 now!
There is no cost or obligation for an initial consultation.
Beware of Foreclosure scams.
Due to the weak housing market, the number of foreclosures is skyrocketing.
There are many individuals and companies who prey on homeowners facing foreclosure.
One common scam is to offer to buy your house and then rent it back to you. If you sell your house with a “QUIT CLAIM” deed, the mortgage is not satisfied, and the lender may continue with foreclosure.