Practical effect of Bankruptcy on Foreclosure

Chapter 11 Bankruptcy 101
August 11, 2010
Things You Need to Know Before Filing Personal Bankruptcy
August 12, 2010
Show all

Practical effect of Bankruptcy on Foreclosure

If you are facing foreclosure and or other debilitating and caustic financial challenges it is a time for careful reflection because the decisions you are in the process of making are going to have lasting effects on your credit FICO score, your ability to borrow money and the cost of money to you for years to come.  There are many attorneys who will strongly suggest bankruptcy to you as an alternative to foreclosure.   As a practical matter bankruptcy is not an alternative to foreclosure, it ONLY buys you a little time while having a fairly significant impact on your credit.  Trust me, just as soon as your bankruptcy is discharged your mortgage lender will be waiting with a motion to lift the stay on their ability to foreclose on yur property.    Further, bankruptcy can prevent you from obtaining the employment you would otherwise enjoy.    It can also prevent you from having certain security clearances which is  very  important here in Washington DC, Virginia and Maryland area where the Federal payroll is the largest supplier of employment.

So how does one decide.    This is not legal advice but rather a practical look at choices one has facing foreclosure.   In my opinion, if foreclosure is the only significant  issue you face and you have little or no unsecured debt such as credit cards,medical bills, non secured credit lines or department store credit cards, don’t get talked into bankruptcy and don’t allow foreclosure.   You can  Short sell the property and regroup.  You’ll be able to borrow again in 2 years within the new federal underwriting guidelines.     Or alternatively, if you are not terribly upside down in the property you must consider obtaining a REAL forensic mortgage audit.    More so if you are in an adjustable rate mortgage.      99 out of 100 of these ARM’s are loaded with underwriting violations some of which allow you to rescind your mortgage altogether.     (go to the rescission page for more on rescission)     A complete forensic analysis of your mortgage gives you leverage on your lender.     Here’s the deal.     If your lender understated the finance charge on your final truth in lending disclosure by more than $35.00  your mortgage is legally non-foreclosable.    Finding this violation gives you excellent protection under regulation Z of the Truth in Lending Act.    Banks do not want you to know this.    They want to be able to obfuscate, procrastinate and humiliate you into giving your last few dollars to them.     In my opinion it is so much better to not pay your lender but give the money to a good RESPA / TILA attorney to fight for your rights if you find significant violations within your mortgage.   It just makes sense.     The lender will have a high probability of making you an offer to lower your rate, fix the rate and potentially give you a principal reduction if your mortgage has a rescissionable  violation of TILA.      A good attorney can file an injunction or TRO- Temporary Restraining Order to stop foreclosure based on the results of a  forensic loan audit and put you in an excellent negotiating posture with your lender.      It works, we know because we do it.

Now on the other hand, if you have massive unsecured debt and no ability to repay or if it will take you 10-15 years to pay off your unsecured debt and your home purchase was much more home than you need and you are significantly underwater, bankruptcy is a good option.   You can short sell it while in bankruptcy in most cases.   Bankruptcy doesn’t carry with it the meaning or social consequences that it once did in the wake of this credit crisis.    The lenders know that their own policies created the sub-prime buying frenzy that resulted in the economy we now face.   It was in all probability their fault not yours.   Further, bankruptcy will cause your cost of money to be higher in the foreseeable future but it will not prevent you from borrowing.   Many of our clients report getting credit card offers and mortgage fliers just months after their bankruptcies are discharged.  Legal Forensic Auditors shares office space with a RESPA TILA attorney and we will be happy to take a free look at your mortgage documents to help you determine if a full forensic audit is your best next move.    Fill out the form below if you are in mortgage trouble or facing foreclosure.

If you are behind on your mortgage, in jeopardy of losing your home, cannot afford your current payment because you expected to refi but cannot, Read the step by step QWR page after filling out this form. We will contact you within 48 hours.
We dont spam and your information is completely private here. We are located in Virginia.

We are actively looking for TILA and RESPA familiar attorneys in the following cities:    Please contact us if you are a bankruptcy or litigation attorney in one of these areas who  files rescission actions against mortgage lenders and wish to partner with a real forensic mortgage auditing shop.

New York New York
Los Angeles California
Chicago Illinois
Houston Texas
Phoenix Arizona
Philadelphia Pennsylvania
San Antonio Texas
Dallas Texas
San Diego California
San Jose California
Detroit Michigan
San Francisco California
Jacksonville Florida
Indianapolis  Indiana
Austin Texas
Columbus Ohio
Fort Worth Texas
Charlotte North Carolina
Memphis Tennessee
Baltimore  Maryland
Boston  Massachusetts
El Paso Texas
Milwaukee Wisconsin
Denver Colorado
Seattle Washington
Nashville  Tennessee
Washington District of Columbia
Las Vegas Nevada
Portland Oregon
Louisville  Kentucky
Oklahoma City Oklahoma
Tucson Arizona
Atlanta Georgia
Albuquerque New Mexico
Kansas City  Missouri
Fresno California
Sacramento California
Long Beach California
Mesa Arizona
Omaha Nebraska
Cleveland Ohio
Virginia Beach Virginia
Miami Florida
Oakland California
Raleigh North Carolina
Tulsa Oklahoma
Minneapolis Minnesota
Colorado Springs Colorado
Honolulu  Hawaii
Arlington Texas
Wichita Kansas
St. Louis  Missouri
Tampa Florida
Santa Ana California
New Orleans  Louisiana
Anaheim California
Cincinnati Ohio
Bakersfield California
Aurora Colorado
Pittsburgh Pennsylvania
Riverside California
Toledo Ohio
Stockton California
Corpus Christi Texas
Lexington Kentucky
St. Paul Minnesota
Anchorage Alaska
Newark New Jersey
Buffalo New York
Plano Texas
Henderson Nevada
Lincoln Nebraska
Fort Wayne Indiana
Glendale Arizona
Greensboro North Carolina
Chandler Arizona
St. Petersburg Florida
Jersey City New Jersey
Scottsdale Arizona
Norfolk Virginia
Madison Wisconsin
Orlando Florida
Birmingham Alabama
Baton Rouge Louisiana
Durham North Carolina
Laredo Texas
Lubbock Texas
Chesapeake  Virginia
Chula Vista California
Garland Texas
Winston-Salem North Carolina
North Las Vegas Nevada
Reno Nevada
Gilbert Arizona
Hialeah Florida
Arlington  Virginia
Akron Ohio
Irvine California
Rochester New York
Boise Idaho
Modesto California
Fremont California
Montgomery Alabama
Spokane Washington
Richmond  Virginia
Yonkers New York
Irving Texas
Shreveport Louisiana
San Bernardino California
Tacoma Washington
Glendale California
Des Moines Iowa
Augusta  Georgia
Grand Rapids Michigan
Huntington Beach California
Mobile Alabama
Moreno Valley California
Little Rock Arkansas
Amarillo Texas
Columbus Georgia
Oxnard California
Fontana California
Knoxville Tennessee
Fort Lauderdale Florida
Worcester Massachusetts
Salt Lake City Utah
Newport News Virginia
Huntsville Alabama
Tempe Arizona
Brownsville Texas
Fayetteville North Carolina
Jackson Mississippi
Tallahassee Florida
Aurora Illinois
Ontario California
Providence Rhode Island
Overland Park Kansas
Rancho Cucamonga California
Chattanooga Tennessee
Oceanside California
Santa Clarita California
Garden Grove California
Vancouver Washington
Grand Prairie Texas
Peoria Arizona
Rockford Illinois
Cape Coral Florida
Springfield Missouri
Santa Rosa California
Sioux Falls South Dakota
Port St. Lucie Florida
Dayton Ohio
Salem Oregon
Pomona California
Springfield Massachusetts
Eugene Oregon
Corona California
Pasadena Texas
Joliet Illinois
Pembroke Pines Florida
Paterson New Jersey
Hampton  Virginia
Lancaster California
Alexandria  Virginia
Salinas California
Palmdale California
Naperville Illinois
Pasadena California
Kansas City Kansas
Hayward California
Hollywood Florida
Lakewood Colorado
Torrance California
Syracuse New York
Escondido California
Fort Collins Colorado
Bridgeport Connecticut
Orange California
Warren Michigan
Elk Grove California
Savannah Georgia
Mesquite Texas
Sunnyvale California
Fullerton California
McAllen Texas
Cary North Carolina
Cedar Rapids Iowa
Sterling Heights Michigan
Columbia South Carolina
Coral Springs Florida
Carrollton Texas
Elizabeth New Jersey
Hartford Connecticut
Waco Texas
Bellevue Washington
New Haven Connecticut
West Valley City Utah
Topeka Kansas
Thousand Oaks California
El Monte California
Independence Missouri
McKinney Texas
Concord California
Visalia California
Simi Valley California
Olathe Kansas
Clarksville Tennessee
Denton Texas
Stamford Connecticut
Provo Utah
Springfield Illinois
Killeen Texas
Abilene Texas
Evansville Indiana
Gainesville Florida
Vallejo California
Ann Arbor Michigan
Peoria Illinois
Lansing Michigan
Lafayette Louisiana
Thornton Colorado
Athens  Georgia
Flint Michigan
Inglewood California
Roseville California
Charleston South Carolina
Beaumont Texas
Victorville California
Santa Clara California
Costa Mesa California
Miami Gardens Florida
Manchester New Hampshire
Miramar Florida
Downey California
Arvada Colorado
Allentown Pennsylvania
Westminster Colorado
Waterbury Connecticut
Norman Oklahoma
Midland Texas
Elgin Illinois
West Covina California
Clearwater Florida
Cambridge Massachusetts
Pueblo Colorado
West Jordan Utah
Round Rock Texas
Billings Montana
Erie Pennsylvania
South Bend Indiana
San Buenaventura (Ventura) California
Fairfield California
Lowell Massachusetts
Norwalk California
Burbank California
Richmond California
Pompano Beach Florida
High Point North Carolina
Murfreesboro Tennessee
Lewisville Texas
Richardson Texas
Daly City California
Berkeley California
Gresham Oregon
Wichita Falls Texas
Green Bay Wisconsin
Davenport Iowa
Palm Bay Florida
Columbia Missouri
Portsmouth Virginia
Rochester Minnesota
Antioch California
Wilmington North Carolina


About the Author:
Legal Forensic Auditorswww.legalforensicauditors.com
Article Source