Will Chapter 7 Bankruptcy Stop Foreclosure in Florida?

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Services for Real Estate Pros with STAMATAKIS + THALJI + BONANNO

A Chapter 7 Liquidation Bankruptcy can stop the foreclosure temporarily. It will not allow a delinquent borrower to pay back the delinquency and reinstate the mortgage over a period of time.  A borrower must pay back the arrearages much quicker on the lender's terms, or the foreclosure action will continue again after about a 60 day delay.

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mortgage foreclosure short sales real estate lender tampa florida attorney

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Ambassador
1,328,507
Jon Zolsky, Daytona Beach, FL
Selling Daytona paradise for heavenly good prices
Daytona Condo Realty, 386-405-4408

So, if people are serious to keep their property, Chapter 13 gives them more time. In teresting.

May 20, 2008 11:03 PM
Anonymous #2
Anonymous
Dee

I am working on a short sale deal that has been appproved by the lender and we just found out that the wife of the Borrower (she is on the Mortgage along with her Husband, but she is not on the Note, they are both on Title) has filed for CH7 Bankruptcy.  We have contacted the bank and they told us that they need to "file a motion", which is good news for us because we are in NO hurry to close.  BUT they have also informed us that it is unclear what will happen after the bank, through the motion, get the property bank.  They do not know what will be the state of our short sale approval, which it was approved until 10/27/2008.

Can you give us an insight on this matter.  Would you know if because of this we will have to start our short sale process all over again?  What will become of our short sale approval after this?

Thanks in advance,

Dee, Beacon Home Solution, Miami

September 19, 2008 02:35 PM
Rainer
11,655
STAMATAKIS + THALJI + BONANNO Bankruptcy, Debt and Foreclosure Defense
Attorneys at Law
STAMATAKIS + THALJI + BONANNO

Generally, the filing of the bankruptcy creates a stay or bubble around the property and no one is allowed within this bubble to do anything further on the foreclosure or short sale without the permission of the bankruptcy court.  The lender is going to file a motion to lift the bubble so the lender can continue with the foreclosure law suit.  The lender's motion will not be for the benefit of the homeowner, so do not count on the lender helping you out.  If you have a short sale contract, the wife's bankruptcy attorney could file a motion to sell the property, and the bankruptcy attorney could usually get a hearing date in about 10-30 days, and assuming that the homeowner will make no money from the sell, then the Court's will routinely grant this type of motion.  This would be the quickest and best route to proceed if you want the short sell to go through.

September 28, 2008 01:06 PM
Anonymous #4
Anonymous
Ron

Our mortgage company ( in Florida ) accepted a Deed in Lieu of Foreclosure since we  are in process of a Chapter 7.

Who normally pays delinquent 2007 real estate taxes during this process?

 

Thank You

October 22, 2008 04:58 PM
Rainer
11,655
STAMATAKIS + THALJI + BONANNO Bankruptcy, Debt and Foreclosure Defense
Attorneys at Law
STAMATAKIS + THALJI + BONANNO

Let the lender pay the taxes, it is their problem now.  Your chapter 7 discharge should get rid of this debt as well if they were included in the bankruptcy filing, but in no way would I recommend you pay the real estate taxes.  Thanks.

October 29, 2008 01:20 PM
Rainer
793
Frederick A Neustein
Law Offices of Charles L Neustein PA - StopForeclosureLawyer.com

Filing a Bankrputcy is the LAST thing you should do.  That would put you on a fast track to judgment.  Most people do not realize that they can stop foreclosure even if they stopped paying their mortgage.  Many recent cases have been filed improperly and an experienced attorney can assist with the identification and filing of substantive and procedural defenses with the court and vigorously defend your case. Due to the lender's actions, omissions or other facts surrounding your case, you may be able to stop making mortgage payments and stay in your home while your attorney vigorously defends your property. This does not necessarily mean that you will not have to pay the loan back or completely Stop Foreclosure. HYPERLINK "faq.html"HYPERLINK "page6.html" It is possible to completely Stop Foreclosure if the bank or lender is in violation of the Florida Unfair Lending Act or other predatory lending practices. If the lender has committed such a violation, the entire principal and interest balance may be waived and the mortgage may be voided. This may not be relevant in your case. But, at the very least, a successful defense can do is buy you precious time to:

*  Stay in your home

*  Negotiate a work-out with the bank
*  Sell your home for a fair price
*  Refinance your home at a fair rate

*  Continue to collect rent on the property
*  Apply for a Court Ordered repayment plan
*  File a Chapter 13 or 7 Bankruptcy

 

When home owners are faced with the reality of facing a potential foreclosure, many experience a state of paralysis. They don't know what to do. Selling the home may not be an option since the equity appears to have vanished.  To fight foreclosure or not? That is the question. Clouding the answer is perhaps the biggest misconception, "Hiring an attorney is not a cost-effective option."  If I can't afford to pay my mortgage, then how in the world can I afford to hire a competent attorney?  And why should I, if I am upside down in my home?  First of all, EVERYONE can and should hire an attorney to represent them in their foreclosure case. There are many competent attorneys who specialize in this area.  Due to the growing number of these cases, many attorneys have become "experts" in this area. Due to the fact that most of these cases are very similar, many excellent attorneys have experienced staff and can offer extremely affordable payment arrangements.  Most people don't know that once the foreclosure proceeding has started, the bank will not accept any future mortgage payments - doing so may adversely affect their ability to foreclose on your property. Furthermore, the bank pays any delinquent real estate taxes and the insurance on the property. In summation, once the bank files a foreclosure lawsuit, most of the homeowner's expenses are being paid by the bank (mortgage, taxes and insurance). However, as the legal owner of the house with full possession, you have all the rights associated with same including residing in your home, collecting rents on the property, etc. Imagine the "EQUITY" you can save / build, if you fight the foreclosure case for a year or more. The cost of qualified legal representation is a drop in the bucket compared to your typical home ownership overhead. Time is money and the real estate and financial markets are likely to turn around.  The hiring of the right attorney will save you thousands of actual dollars, in addition to thousands in time value of money.  Its really a no-brainer.

Respectfully,

Frederick A Neustein

http://StopForeclosureLawyer.com

November 05, 2008 01:29 PM
Anonymous #7
Anonymous
HELEN

I AM A HOMEOWNER 2 MONTHS LATE IN MY MORTGAGE, NO MORE EQUITY ON THE HOUSE , PAID OFF MY CARS AND LATE CREDIT CARDS PAYMENT. HOW DO I QUALIFY FOR CHAPTER 7 BANCRUPTCY.

MY FRIEND TOLD ME THAT IF YOU ARE A HOMEOWNER YOU ARE DEFINITELY A CHAPTR 13.  IS THIS TRUE?

THANKS

December 17, 2008 09:27 AM
Anonymous #8
Anonymous
jim

It's more complicated than that. If you paid off your cars and they have any value the court will sell them to pay off creditors, you are only allowed a certain amount of equity. You must first lay out all the cards before you can make any determination about bankruptcy in most cases there is no need to file unless your millions in debt. If the only reason your filing is because of you home mortgage you probably don't need to file, you can renegotiate your home loan down in balance and payments or short sale it or deed in Lu of foreclosure or live there free for a long time before a foreclosure can happen. You need to talk to a real estate attorney not a bankruptcy attorney. They can renegotiate you mortgage or deal with the foreclosue action when it comes. Here's one Corey Hoffman or Pilar at 305-443-5600 just tell them Jim sent ya. Hope this was of help.

February 08, 2009 10:06 AM
Anonymous #9
Anonymous
Theresa, Jacksonville FL.

we were delinquent on our mortgage three months, we sent in one months payment after we were told our mortgage company had started foreclosure which they returned a month later, we attempted communication with them (Wells Fargo) and they said if we could make another payment of $4200. that would stop the foreclosure and qualified us for loan modification setting us up to not pay anything until May 2009, at a $50. higher payment than what we were alread paying well we did as they instructed only to get a payment schedule for a temporary forebearance this was never an option discussed with me  and was $379.MORE a month than what we were already agreed to by struggling to pay.  They kept our $4200. and since we didn't make the increased payment we were put back into foreclosure, now our original forclosure was filed on Dec. 5, 2008 our $4200 payment was made in Jan. 2009, but made no difference because after sending in all the necessary financial statements they said we didn't qualify for a loan modification and that in fact we never were qualified for one only pre-qualified which is not what they told me originally.  So what do i do now, my husband wants to file bankruptcy and i think it's our only option.

March 31, 2009 07:45 AM
Rainer
7,408
Judy Dixon
Bankruptcyonly.com

I think chapter 13 bankruptcy is more suitable in stopping the foreclosure. Have a look at this link http://www.bankruptcyonly.com/chapter-13-bankruptcy.php

Hope this might help you.

December 11, 2009 03:44 AM
Anonymous #11
Anonymous
Anonymous

I'm in Alaska and am going to be filing for chapter 7 bankruptcy soon. Obviously, I'm filing for a reason and I don't have much money for a lawyer. So, I'm just wondering about how much I'd be spending for a lawyer to take care of it, or if I should just learn & do it without one. Thanks for the help! See personal bankruptcy lawyer..What are your views?

November 13, 2010 06:15 AM
Anonymous #12
Anonymous
credit counseling for bankruptcy

I live in CT and my wife and I are trying to file bankruptcy. We went to one lawyer and he wanted $2100.00 plus court costs. If im filing chapter 7 how can I afford to pay over 2,000$? Anyone in Connecticut Hartford Tolland Mansfield county have any recommendations? Thanks in advance! What to say about credit counseling for bankruptcy ?

November 13, 2010 06:18 AM
Anonymous
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