How can I save my home in a bankruptcy? - Bankruptcy Law Questions and Answers- LawQA.com

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How can I save my home in a bankruptcy?

I have been behind on my mortgage for over 1 year with my banks and as investor. I had a discharge of Chapter 7 bankruptcy in May 2011. There is no summons yet but I expect it any day. I cannot really afford house but want to stay as long as possible. What should I do?

Answer By James Wingfield
Law Offices of James Wingfield
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You could, potentially, file a Chapter 13 bankruptcy. While no new discharge is available, you are able to create a plan to repay your mortgage arrears. With that said, you will not be successful with the plan (and the case will be dismissed) if you are unable to propose a confirmable Chapter 13 plan, which will include payment of all of your mortgage arrears over a period of between 3 and 5 years. In order to propose such a plan you must show (at a minimum) adequate income to support not only your plan payments but your normal monthly mortgage payments.

Answer Applies to: Massachusetts
Replied: 10/3/2011

Answer By Janet Lawson
Janet A. Lawson Bankruptcy Attorney
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Well..... if you could afford it a Chapter 13 would let you get caught up but you would have to make the payments as they come due. If you can't get a loan modification.... you will be moving eventually. You will not get a summons. You will get a "Notice of Default" and 90 days after that you will get a "Notice of Sale". On the date in the notice sale, (which will be in an additional 20 days), the house will be sold.

Answer Applies to: California
Replied: 10/3/2011

Grace Law Offices of John F Geraghty Jr.
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You had elected Chapter 7 which is a liquidation and does not protect the home. I would Deed it back to Lender in lieu of foreclosure and would help your credit score.

Answer Applies to: Georgia
Replied: 10/3/2011

Ashman Law Office
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Unless you work out a deal with the bank, you should call a mover.

Answer Applies to: Georgia
Replied: 10/3/2011

Attorney at Law
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If you are not making your payments and can't afford to catch up the arrearage, the house will ultimately be foreclosed and you will have to move. The bankruptcy discharge will not help you keep your house, although it will keep you from being sued for any shortfall on the mortgage after a foreclosure happens. If you want to stay in the house for as long as possible, some mortgage companies (but not all) will work with you to allow you to rent the house back for a fair market rental for a period of time after the foreclosure. If you can't afford that, or if that option is not available, than you can drag out the process by refusing to leave even after the foreclosure has happened. Under those circumstances, the mortgage company may offer you money to move out by a pre-determined date, provided that you take care of the house in the meantime. This keeps the mortgage company from going to the expense and delay of an eviction proceeding, which can take a long time and cost them money. This is called "keys for cash" and is is quite common following a foreclosure.

Answer Applies to: Virginia
Replied: 10/3/2011

Bankruptcy Law office of Bill Rubendall
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After you receive your bankruptcy discharge there is no automatic stay as to foreclosure of your house.

Answer Applies to: California
Replied: 10/3/2011

Answer By Bill Zurinskas
Bankruptcy Law Center
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Saving your home in bankruptcy requires that you file a chapter 13 bankruptcy to cure the default. You have filed the wrong type of bankruptcy to permanently stop a foreclosure. A chapter 7 bankruptcy only temporarily stops a foreclosure and although it discharges the mortgage obligations, it does not prevent a mortgage company from eventually foreclosing on the real estate and eventually evicting you from the premises if you are in default on your mortgage obligation. You might want to hire an attorney to fight the foreclosure. Some attorneys specializing in foreclosure defense have had success in litigating issues, such as standing and proof of ownership of the note and mortgage.

Answer Applies to: Colorado
Replied: 10/3/2011

Answer By Abel Fernandez
Diefer Law Group, P.C.
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You could file a chapter 13 case.

Answer Applies to: California
Replied: 9/30/2011

Judith A. Runyon, Esq. Attorney at Law
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Bankruptcy to save your home is no longer an option.

Answer Applies to: California
Replied: 9/30/2011

Answer By Kevin Heupel
Heupel Law
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Unfortunately, you are at the point that the options have run out. You might list the property to short sale, which might provide some additional time in the house, but it is best at this point to plan your move.

Answer Applies to: Colorado
Replied: 9/30/2011

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