Foreclosure Article
Will bankruptcy save my home from foreclosure?
WILL BANKRUPTCY SAVE MY HOME FROM FORECLOSURE?
What will bankruptcy do?
When bankruptcy is filed it provides an automatic stay in foreclosure proceedings. This means that a trustee sale cannot be held so long as the bankruptcy is filed before the trustee sale starts.
Do I automatically get to keep my home if I file bankruptcy?
No. Bankruptcy does not allow the homeowner/borrower to keep their home while also ending their obligation to pay the home loan. Bankruptcy may be tool to provide temporary or long term assistance to the borrower but it’s a strategy that should be pursued after consulting with an attorney.
How can bankruptcy help?
There are a couple of ways a bankruptcy might help, and may be recommended by your attorney.
The effect of filing a bankruptcy grants an automatic stay in debt collection efforts including foreclosures. An automatic stay basically means all collection, repossession, and foreclosure efforts are put on hold until the bankruptcy process is complete. This period may allow your attorney to work through your foreclosure case more thoroughly or give her or him time to work something out with the lender.
Another way a bankruptcy might be helpful is that it may allow certain debts to be discharged, meaning your obligation to pay ends, or it may reorganize your debts into a more manageable payment. This may help by freeing up money so that you can more easily make your monthly payments.
Is there a downside to declaring bankruptcy?
Bankruptcy may negatively impact your credit score however at the point most people are considering bankruptcy, their credit scores have already taken a hit. There may be other cons to pursuing the path of a bankruptcy but they will depend on other factors that your attorney will discuss with you. Remember no one case is the exactly the same as another.
Bankruptcy is often made more difficult when mistakes are made in the process. Often people will file before meeting with an attorney and overlook important facts or issues in their case. Other common mistakes occur when individuals, in anticipation of filing bankruptcy, make additional purchases or attempt to pay off certain debts to maintain relationships with whoever lent them the money. This should be avoided until consulting with an attorney because certain purchase may make the bankruptcy look fraudulent, and payments made can be undone through the bankruptcy process - adversely affecting both the borrower and the person or business that lent the money. Meeting with an attorney, even if it’s just for a brief consult could prove instrumental in making the process smoother, less stressful, and help avoid these and other pitfalls.
Where can I get more information about bankruptcy?
The US Bankruptcy Court of Arizona has vast amounts of information online as well as a help center and hotline to answer questions. The hotline number is 866-553-0893. However, individuals should also contact legal aid, especially if they are also dealing with foreclosure related issues or at risk of foreclosure. To apply for legal assistance use the Access To Justice Online Intake System.
Where can I find legal help with a foreclosure?
Individuals faced with loss of a home through foreclosure/trustee sale or dealing with issues related to a foreclosure can apply for free and reduced fee legal services through the Access to Justice Online Intake System, the link is also available on the top right of AZLawHelp under the “LegalLEARN” section. Individuals may also contact legal aid directly, however due to high call volume there may be long wait times on the phone and the phone system may disconnect calls when overwhelmed. To find the legal aid agency serving a particular county in Arizona, select the desired county in the drop-down under the section titled “FIND FREE LEGAL HELP” on the right column of AZLawHelp.
Comments:
QUESTIONS
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Is it legal for my lender to switch lenders and foreclose my house and sell at auction with out giving me any notification or giving me the option to file bankruptcy
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I have a first and second mortgage on my home. The value has plummetted by 35% since I bought it 2 years ago. How can I submit for a loan modification program if I have 2 loans? My only other option is foreclosure. What happens if I have to default on the 2nd, but try to stay current on the 1st? I need help!
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Does the anti-deficiency statute cover for a an 80/20 loan where the 1st mortgage was refinanced (no cash out)under HARP 2.0? Refinanced only for lower interest rate/payment.
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I would like to know where and how to apply for an intake. I have a CIC # and have contacted the Attorney Genrals office. I filled out and submitted my situationon line on this website in early May,my husband and I have not heard back from it. Can you pleae advise ? Thank you.
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I live in a house at my parents on their both deceased and I want to file bankruptcy on the house I'm only the void foreclosure can I do this legally
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I have attempted to sell the property in AZ for a year and 6 months. Since 1/2 of this time was applied to a short sale I had 3 Realtors. I had a first mortgage and a second home equity. The second refuse to cooperate the last realtor pulled out my foreclosure is set for Nov. can the equity loan come after me for the money? Am I protected by the Anti deficiency Laws?
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can my RV be reposess for being 43 days late
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Bankruptcy was done 6/2010.My mortgage was included and at same time GMAC mortgage was going thru bankruptcy and Ocwen took over my payments which I continued to make. I was not aware that I was to reassume my loan nor advised by Ocwen or lawyer on this. Ocwen took payments and stopped reporting to credit bureau's.Tried Harp but was unable due to no show of a morgage.Struggling to pay 1400mo now.If let go can they report it with lack of show of mortgage.Can they be forced to report back paymt's.what options do I have before I'm forced out of home.Reach me at [email protected]
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I was served a special writ for foreclosure due to being behind on HOA dues. How long do I have to try to pay the amount owed? It states my redemption period is 6 months. Is this from data of sale? Or from date I was served? Also, how long do i have before it goes to auction?
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I am filing a foreclosure on an agreement for sale because of non payment for 5 months. Do I need to send a letter of intent to foreclosure and wait 60 days before filing with the court?
STORIES
LegalLEARN
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Click Here to apply online, or call
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OTHER LEGAL RESOURCES
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State Bar of Arizona
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Maricopa County Bar
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National Domestic Violence Hotline
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Bankruptcy Court Self Help Center
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Certified Legal Document Preparer Program
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ORGANIZATIONS
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