Foreclosure and Bankruptcy – What Every Person Facing Foreclosure Should Know


If you're worried about losing your home to foreclosure and you're behind on your mortgage payments, there are some financially strategic steps you can take to save your home. It is best to learn about the foreclosure laws in our state and understand the well-researched case law. You should probably immediately seek the professional advice of a bankruptcy attorney who has dealt with such matters if you want to avoid foreclosure.

Did you know that once you file for Chapter 7 bankruptcy in California, the bank cannot make a foreclosure sale during the process which takes around 3-4 months? The lender can ask the judge to circumvent this general rule and preclude prematurely or request a foreclosure sale, but it is rarely granted without extenuating circumstances.

In Chapter 13 bankruptcy, you will need to track your mortgage payments and / or make a deal with your lender, otherwise the lender can ask the judge to foreclose anyway. Depending on your relationship with your lender and your good faith, the judge will sometimes allow it. Again, it's best to ask your bankruptcy lawyer what to do and how to do it so that you have the best chance of keeping your home after it's completed.

Can You Stay In Your Home After A Foreclosure In California?

Turns out you can stay in your home after foreclosure and until the final sale, even if that would cut it off from close quarters. Generally speaking, after a foreclosure it takes anywhere from 2 months to a year for the actual sale to occur. This is the case with judicial and non-judicial foreclosures.

In fact, in California there is a terrible problem where the family that once lived in the house before the foreclosure leaves as requested, but then a new party, a homeless squatter, moves in and stays in the house until after the foreclosure. until it's sold, often until it's sold. new owners are trying to move in. Sometimes new owners have to go and get an eviction notice which also takes time. It's an interesting world we live in, but that's what's going on here in California.

In Ventura County, there has been a whole slew of cases where this has happened. Squatters find loopholes on the internet, often by watching YouTube videos. Some of the tips are rubbish, some are valid. Either way, this is a problem in the neighborhoods around the Ventura County area and the adjacent adjoining neighborhood that is in Los Angeles County.

Can You Buy a New Home After Filing Chapter 7 Bankruptcy?

The answer to this question might shock you. After all, people assume that filing for bankruptcy is the kiss of death and that their credit will be shot forever or at least a decade. No. This is because 24 months after the closing date of your bankruptcy, you may be eligible for a home loan and mortgage provided you have sufficient income at that time to repay the loan.

For Chapter 13 bankruptcy the situation is similar, but there are other things you should know and you should contact a bankruptcy lawyer in your area who specializes in these locations for all the correct details. .

What can I keep from home in the event of bank foreclosure?

This is a very important question and if you get it wrong you could end up in jail for grand theft. You cannot take solar panels, water heaters or any other built-in device. Don't try to take trash cans, trash compactors, slide-in stoves, dishwashers, or air conditioning systems. You cannot use the burglar alarms, smoke detectors or integrated smart home systems in the home as an integrated system. You can bring TVs, refrigerators, and washers and dryers.

You cannot take an outdoor patio system that is anchored to the house on one or more sides or on top. Basically, the law states that you cannot take anything onto the building or the land. Again, take these rules seriously, and if you have any questions, ask your bankruptcy lawyer. If you have to go and you've exhausted all other lanes, do it right. You don't want to start your fresh start with a new criminal conviction – that doesn't look good on any CV.

There are ways to prevent foreclosure in California

The easiest way is to ask your lender for a loan modification. The bank doesn't want to take your house back, it just wants to get paid. So, it is in their best interest to find a favorable agreement that will allow you to repay your payments until the mortgage is fully paid off. Sometimes lenders don't budge an inch on first request, but when a lawyer contacts them on your behalf, it's amazing what you can bargain for.

If you pay off your mortgage, the lender obviously can't seize, which is another option. Get a loan from another source and pay off the mortgage. You can also sell your home as part of a short sale or for the amount remaining on the mortgage. Although you won't get any equity back, your credit will be great after you pay it off.

other considerations

After the 2008 housing accident, many duty officers made mistakes in the paperwork. The court no longer takes its word on the borrower. If they made a serious mistake, your lawyer will now be in a very favorable position to negotiate for you. At least your bankruptcy and foreclosure attorney will ask the lender to start the process all over again, and at best, could save you tens of thousands of dollars and a truly stellar renegotiated mortgage rate and terms. Make sure you learn all the facts.

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