Home Mortgage and Refinancing » foreclosures

Can I Stop Foreclosure with Bankruptcy?

Mortgage Maven — Fri, 27 Jan 2012 21:25:08 +0000

When filing for bankruptcy, foreclosure proceedings that have just started can be stalled as payment plans are negotiated. Depending on the circumstances, filing for bankruptcy also halts existing foreclosure proceedings until the bankruptcy court hears the case and starts liquidating assets.

Chapter 7 Bankruptcy

In Chapter 7 bankruptcy, the borrower’s assets are liquidated to pay back the debts. Filing for Chapter 7 bankruptcy places a stay order on the home’s foreclosure. Depending on state law, the home may be saved and kept if it is mostly paid for, affordable based on the person’s current income and does not have a high value. However, this depends on the location of the person’s legal residence, the value of the property and the equity within it.

Bankruptcy under Chapter 7 requires an income means test. If the borrower has a current monthly income greater than the state median, a means test is run. The means test determines whether the bankruptcy court thinks you have enough income after paying your necessities and outstanding obligations to pay the current debts.

Speak with a Minnesota bankruptcy lawyer to ensure that all debts, required expenses and income sources are properly accounted for in the means test. You do not want to file for Chapter 7 bankruptcy and then be rejected due to an incorrect formula on your ability to pay. If the court rejects the bankruptcy case due to the income test or means test, your creditors can resume foreclosure.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy involves setting up a debt repayment plan. As long as the bankruptcy includes all mortgages, liens and lines of credit against the house, the house is part of the debt repayment plan in Chapter 13. If the home owner forgets to include a lien holder against the home or a line of credit that they have used, that creditor can still foreclose on the property. And they can do so even when the remaining creditors are being paid. Minneapolis bankruptcy lawyers can assist you in setting up the repayment plan properly.

Speak with a Minnesota bankruptcy lawyer before you attempt a short sale of a home during bankruptcy. Done correctly, the short sale of a home can reduce the outstanding debt load while preventing a fire sale of the property. Done incorrectly, the short sale can result in additional debt or creditors not being properly paid and a bankruptcy case

Second Homes

Second homes are not protected under bankruptcy law like primary residences. If you own a vacation home, it will be sold to pay your debts. Time shares may generate legally required payments and even debts but rarely have market value. Time shares will likely require inclusion in your debt repayment plan while being sold at a loss.

Investment properties are also fair game for liquidation unless you can negotiate a payment plan or sell the property before the bankruptcy. You need to work with Minneapolis bankruptcy lawyers to arrange the sale of investment properties for as much money as possible. Minneapolis bankruptcy lawyers under Chapter 13 may be able to help you set up a rent to own arrangement with the current tenants to minimize your losses or maintain cash flow from existing rental properties to pay off your own debts. For those running multiple rental properties, Chapter 13 bankruptcy may be an option to save the homes and the cash flow from them.

Two Ways to Buy a Bank Repossessed RV

Mortgage Maven — Wed, 07 Dec 2011 09:21:14 +0000

During a recession, people want to keep as much money as possible. The reason why so many people invest in gold is because there is a lot of instability. But gold always provides you with some value so it is a good investment for some people. During times of war, or an oil crisis, there is always a rise in the demand for gold because people are trying to stash their cash in a place where the government won’t be able to find it

There are essentially two different ways to buy a bank repossessed RVs. The first way involves you to do a little bit more work, but the result is that you are not going to have as much strength competition when you are buying your next RV. If you buy a bank repossessed RV directly from the bank, there is less competition from other buyers. In order to find bank repossessed RVs for sale before an RV auction, you’re going to have to call around local companies that sell RVs. Ask them if they have any cars or RVs that they have repossessed and that they would like to sell. Some banks will work with you and some won’t. You’ll never know unless you take the time to call them and ask them. I have generally found better results with credit unions because it is easier to talk to the person who is in charge of what I am doing.

There are some advantages to waiting for the RV auction itself. One of these advantages is that you may be able to look at other different inventory at the same time, before you buy. The other major advantage is that you may actually be able to buy the car or RV for less if there are not very many people present at the auction.

Know When to Buy Travel Trailers and RVs Before They Go Through Foreclosure

Mortgage Maven — Wed, 23 Nov 2011 02:25:08 +0000

When you’re trying to get the best deal on a used RV or travel trailer, you should know that the best way to find a good deal is to buy these RVs when they are in pre-foreclosure. Welded seller receives a notice that they are going to be foreclosed on; they do one of two things. Either they ignore it, or they try and sell their RV as quickly as they can. People that are smart go for the second option. They know that having a foreclosure on their credit is very bad. They want to be able to sell their RV so that they do not have to go through foreclosure. Typically the bank is also motivated to sell repossessed RVs. Here is an opportunity for you to short sell the bank and maybe also the seller. You can get a great deal, and you can help them solve their problems of spending extra money in keeping foreclosed RV and also help them get rid of it.

Once an RV gets foreclosed, it becomes a repossessed RV. Repossessed RVs are then taken and sold to the highest bidder at RV auction. RV auctions are also a great way to buy a used RV. At an RV auction, most of the time the entry bid is very low. When there are a lot of people at auction, these goods can get bid up very quickly. But when there are not very many buyers, or there is a time and a ton of inventory, sometimes it is possible that the owners will not bid more for the RV than they think that it is worth. It really wouldn’t make sense to pay more for an RV that it is worth. Most of the time, RV’s auction sells for far less than market value.

Short Sales and How You Can Avoid Foreclosure

Mortgage Maven — Sun, 08 May 2011 20:48:05 +0000

The economy being what it is, unemployment is still a major problem in the nation. Following closely behind it is the treat of foreclosure. Foreclosures have become very commonplace. So much so that just about every homeowner worries about it on one level or another.

So when you as a homeowner find yourself financially distressed and in fear of foreclosure, what can you do? It may be too late to figure out how to refinance your mortgage or you simply may not have that ability. Sometimes the options appear bleak; in fact some options appear even worse than foreclosure. But there is one option that can provide some hope – it’s the short sale.

Short sales of properties are becoming more common every month. A short sale means you’ll be selling your property for less than the amount owed to your mortgage lender at the time of the sale. You’re selling at a loss so you’ll need your lender to agree to take a short sale, but this remains a possibility because of today’s market. Some lenders will agree to work with you in this situation if the hit they’re going to take from the short sale is less than the cost they would incur from selling the house themselves.

Many homeowners may find it difficult to ask for the help, or may even have a difficult time getting through to the right channels to discuss a short sale. It is worthwhile to put in the time and effort and come to an agreement with your financial institution though because a mortgage payment you cannot make will bring you one large step closer to foreclosure.

The short sale process can seem daunting at first, and it may take much longer than you originally anticipated. It will be difficult for your lending institution to process, and they may not have the right resources to move as quickly as with conventional sales. Keep in mind that there will be more paperwork to fill out, and things may not go as easily as you hoped, but don’t give up. A short sale could mean the difference between freedom and foreclosure.

Tenant Eviction Tips and Tricks

Mortgage Maven — Mon, 06 Sep 2010 03:33:03 +0000

Are you a new landlord? Maybe you have owned properties for years, but been lucky enough to never have to evict a tenant. Regardless of which situation you are in, you find yourself thinking about and convincing yourself that you need to do an eviction. While the tenant eviction process can vary in each state and jurisdiction, here are some tips that may help you regardless of where you live:

Most landlords lose eviction cases when they fail to have proper documentation. This can include, but is not limited to, not having solid enough or proper proof of lease violations. If the tenant has committed a lease violation, make sure you get as much proof of it as possible. Pictures, witness statements, and police reports go far to prove your case. If the tenant eviction is for non-payment of rent, be sure that you have accurate financial records. Bring them with you to court.
While you should follow the procedures for the tenant eviction process in your state, do everything with expediency. Many landlords will procrastinate filing an eviction and let months go by and the problem fester before they do anything. After this length of time the problem will potentially cost 10X as much to fix or you have lost much more rent than you should have. Get the eviction done in a timely manner.
Once the eviction is filed, do not make any deals outside of court. The only exception is if the tenant agrees to resolve the problem prior to court to your satisfaction and in a way that can be documented. If you decide to make a deal prior to court, have it in writing and set the deadline for the day prior to the eviction court. Then if the tenant does not follow through, you can still go to court and have the eviction. Too many landlords listen to the excuses of the tenant and then cancel the eviction only to find out that the tenant was not planning to live up to their end of the deal anyway. The landlord then needs to start the eviction process over again!

Evicting tenants is not a pleasant process, but it is necessary for every landlord to understand and to do it properly and promptly when their is a problem.

Facing Bank Foreclosure

Mortgage Maven — Sat, 04 Sep 2010 19:35:04 +0000

These days, we are hearing a lot of news about the real estate market – and much of it is conflicting. There are a lot of people who say that now is the time to invest in the real estate market, because consumer confidence is on the rise and prices are sure to go up in short order. However, there are also a lot of people who say that now is the wrong time to be investing in real estate, because we have not yet exited the recession and prices will probably dip quite low again in the near future.

Which side should you believe? Well, it is difficult to say – time will tell. In the meantime, however, we believe that there are a lot of bargains out there. The fact is that in spite of all the talk of an economic recovery, a lot of people are still facing the possibility of bank foreclosure. This is very unhappy news for these people, obviously, but is good for potential buyers such as you.

Why is someone else’s foreclosure a good thing for you, you ask? Well, it all comes down to the fact that anytime a bank seizes property, it must sell it again – and usually, these sales happen at a loss. If you have ever been to a repossession property auction, you know that prices are generally somewhat lower than they would be on the open market. In fact, there was so much seized property being sold during the recession that the market was absolutely flooded with it – and this, of course, drove prices down pretty low. In a lot of cases, banks actually lose money on the sale of property that they have seized from other people – and they will continue to do so for a while.

Foreclosures, then, are good for the potential buyer. We are living in a buyer’s market, not a seller’s market – there are still far fewer buyers out there than sellers, and so sellers can dictate terms. We believe these are good market conditions to invest in real estate.

Taking Advantage Of Home Foreclosures

Mortgage Maven — Sun, 11 Jul 2010 02:51:04 +0000

There are many people who are looking to purchase a home right now, but are convinced that the tail end of the recession is a terrible time to buy. In fact, however, this is entirely untrue – there are still many cheap foreclosed homes up for auction. The worst part, of course, is that many of these people who find ways to discourage themselves are in fact first time home buyers, the people who can benefit the most from the kinds of savings purchasing a foreclosed home will grant them. These first time home buyers – who are usually, but not always, young couples – could achieve huge savings if they were willing to explore the foreclosed home market.

Of course, taking advantage of cheap home foreclosures comes with a down side as well. For example, you generally are buying the place as is – that is to say, there is no builder’s warranty or guarantee, and you will have to pay for any damages out of your own pocket. To make matters even murkier, there is the fact that a lot of these bank foreclosed homes that ended up getting repossessed have not been maintained properly for years, and suffer from all kinds of pre existing conditions. This, of course, is not a problem for those who are willing and able to fix up houses themselves, but it can cause all kinds of issues for those who are too busy to do so – for example, young couples.

In order to avoid being placed in the situation of having to fix up a foreclosed home that you buy, it is always recommended that you consult as many experts as possible, and have them assess the value and condition of the house before you purchase it. Hire experts to examine every aspect of the house – from the roof, to the structural integrity, to the plumbing and wiring, even the lighting. As they say, it is always better to be safe than sorry.

How To Find Foreclosure Help

admin — Thu, 08 Oct 2009 09:58:07 +0000

With the economy as shaky as it has been, more and more people are finding themselves in the position to lose their homes. They are discovering that they don’t have the money to be able to afford their mortgage. All too often, one missed payment can equate to a person having to look for foreclosure help.

If you are searching for an answer to your foreclosure help questions, you’re not alone. There are lots of people who are in the same boat that you’re in. fortunately there are some things that you can do to keep your home and to get your credit rating back where it belongs.

The first thing you should see is if you can change the terms of your mortgage. Lenders may be able to adjust your mortgage, especially if they know that you can’t afford to make your mortgage payment for a specific reason. After all, they want to get paid, they don’t want to own your home.

Those who are successful in changing their mortgage terms may have to pay a bit extra in interest for a time, but this can be a small price to pay for being allowed to stay in your home. The long term payment truly makes sense in this case.

You may also want to look into a repayment plan as well. These are easy to arrange and can help you to avoid foreclosure in most instances. You simply call the bank or mortgage company as soon as you realize that you are getting behind and work with them to make payments.

If you happen to miss only one or two months, the loan company can break up those payments in to the next six months worth of payments, making your monthly budget a bit more expensive but allowing you to keep your home and a good credit rating.

If you have missed a few payments and foreclosure looks inevitable, you may want to see if you can give your house back to your creditor in exchange for complete forgiveness. This means that you will not be able to stay in your home but you also will have no black marks on your credit and that you won’t owe more on your home.

If you are in this type of a situation, take a look at filing for bankruptcy. Filing for bankruptcy is the ideal solution for some people as it allows them to wipe the slate clean. There are, however, specific rules that are connected with filing for bankruptcy, so make sure you look at this entirely before you make the decision to file for it.

You may also be able to borrow enough money through a new mortgage to pay for your old, overdue one. If you have equity in your home this may work especially well.

It can be frightening to think about losing your home, but if you act on the situation quickly, you may be able to change things. The sooner you look for foreclosure help, the better your overall situation may be in the end.

Feasting on Foreclosures – Time for a Termite Inspection?

admin — Wed, 09 Sep 2009 02:05:35 +0000

The recession has been in full swing for several years now. Unemployment numbers are frightening. Millions of homes are in foreclosure. And the real estate market has been stagnant. But if you think those homes have been vacant, think again. Guess who moved in. Termites!

The root cause of the problem of course, is neglect. The longer a home has been neglected, the higher the risk for termites. In some cases the homeowner was in financial trouble long before foreclosure. It is a safe bet that termite inspections were never done. Plumbing and roof leaks, also a result of neglect, make vacant homes even more attractive to termites.

US property owners currently pay between $1.2 and $5 billion dollars per year for termite treatment and damage. That amount is more than all the wind damage from hurricanes, tornadoes and other storms put together. Annual termite inspections dramatically reduce the risk of serious termite damage.

An average drywood termite colony consists of 5,000 to 10,000 termites according to researchers. Colonies can mature and begin to swarm in about 4 years. During that period a single colony can split into multiple colonies.

Termite researchers believe it is possible that termite colonies in foreclosed homes are growing larger than normal. Termite control professionals say their observations in the field agree. Neglect and the lack of termite inspections is the cause.

Banks selling foreclosed homes have typically never seen those homes. They have no knowledge of the condition of the home or of any problems that might exist. No property disclosure report is given to buyers and the homes are sold in “as-is” condition. The buyer does have the right of inspection, however. Savvy buyers will obtain both a termite inspection and a complete home inspection by reputable professionals.

If a termite inspection reveals problems, the bank will not make repairs. Unfortunately, there is no negotiation on this issue. This is the time to get estimates for both termite control and damage repair. Any offer made on the foreclosed property should reflect the value of the property minus termite treatment and repairs.

The bottom line is that homes in foreclosure have typically been neglected, often for years. These properties have a high risk of termite infestation. The longer the period of neglect, the higher the risk. Before committing to purchasing such a property, a professional termite inspection should be required. The cost of the inspection and termite control is minimal compared to the cost of future damage.

Finding Repossessed Homes and Making Profitable Real Estate Investments

admin — Sun, 06 Sep 2009 12:03:29 +0000

Investing in real estate can bring in a lot of money. However, you have to choose your properties carefully and have a wise investing plan because not just any real estate will be profitable. Foreclosure listings and repossessed home listings are great resources for anyone who is looking to invest in some real estate and turn a profit from it.

From the repossessed homes listings, you should be able to locate an appropriate property for your first real estate purchase, as well as your first experience with foreclosure real estate investing. To help you make sound real estate investing decisions, there are an array of resources, including many on the internet.

You can find loads of information about finding repossessed homes by simply entering a search in the internet. Just about everything you need to know could be found on the internet.

Websites of both private and government financial institutions would most likely have a listing of these properties that they might be interested in purchasing. It is also highly likely that such foreclosure listings are available in the offices of the financial institutions.

If you really want to make a lot of money by investing in real estate, you should buy foreclosure properties because they sell for a lot less than raw land and similar properties, which will be right at market value, or maybe even higher than that.

You can get a feel for what’s out there, and what will work with your available budget, by digging through some of these foreclosure and repossessed home listings.

If you take the time to educate yourself about foreclosure properties, they can be an excellent money-maker for you. Although at first glance, finding lucrative foreclosure deals seems like a challenging task, if you know how to find these money-maker properties quickly, it is really not that hard after all.