Mortgages, Bankruptcy, and Foreclosure in Tampa

How To Stop Foreclosure

If you are determined to prevent foreclosure on your home, you may decide that filing for bankruptcy is for you. Under both Chapter 7 and Chapter 13 bankruptcy, you are entitled to keep your primary home should you decide to file.

Under Chapter 7, you may be required to liquidate your assets. With Chapter 13, you are required to repay a set amount to your bankruptcy trustee each month.

If you decide Chapter 13 is the right way to file, you may also be able to file for a loan modification or have the bank give you five years to repay all past-due balances on your mortgage.

What about obtaining a second mortgage after filing for bankruptcy? Within two years after filing for bankruptcy, you may qualify for an FHA or VA mortgage. Whatever your outcome is will be based on what circumstances you have. To learn more, speak to a bankruptcy attorney.

You may also qualify for a Fannie Mae mortgage just two years after you have filed for bankruptcy. If you are able to make 12 consecutive payments if you have filed Chapter 13, you may also be allowed to increase your debt.

There are some folks who decide that they do not want to keep their home when they are filing for bankruptcy. There can be some advantages to this, but there are also many advantages to keeping the home. It is best to consult with a bankruptcy attorney to discuss what your options are for your scenario.

People who file for Chapter 7 bankruptcy may decide to surrender their homes. Regardless of whether this is the case or not, they will need to file a statement of intention. This statement lays out if they intend to reaffirm, alter a loan, or surrender the home. Should you decide to surrender the home, you will be under no further obligation for the debt of the home.

If you do decide to walk away from the home, the home will be sold at a foreclosure auction. Should the auction not bring in enough funds to cover what is due on the mortgage of the home, a mortgage deficiency will occur. An example of this is if you owe $180,000 on your mortgage, but the house only auctions off for $80,000, the creditor is short by $100,000. In this case, they can get a judgment to have your wages garnished or have liens put on any other property you own for the $100,000. However, under bankruptcy laws, a discharge in bankruptcy will nullify a judgment.

Filing bankruptcy can be a confusing thing to do. But there are times when it makes sense to do it in order to get a fresh start on life. There are various aspects to think about, and one certainly does not want to make a mistake during the process. While many have had success in filing themselves, it is often better to have the guidance of a bankruptcy attorney, as each circumstance is different. Attorneys have been through the entire process hundreds of times, so they understand the legal jargon that goes with it. It can save you hours of time, as well as your sanity.

If you’re in Tampa and need a bankruptcy attorney, contact Weller Legal Group. They can help you file for bankruptcy and assist you when you are going through financial difficulties.

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