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The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income is known as Chapter 13 bankruptcy. Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.

A chapter 13 bankruptcy is also called a wage earner’s plan. It enables individuals with regular income to develop a plan to repay all or part of their debts.

Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. If the debtor’s current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period “for cause.”

A Chapter 13 Plan often must last for the full 5 years if the debtor’s current monthly income averaged over the last 6 months is greater than the state median. In no case can a Chapter 13 Plan be proposed that lasts longer than 5 years. Creditors are prohibited by law from starting or continuing collection activity during the time the Chapter 13 bankruptcy is active.

A Chapter 13 bankruptcy offers many advantages to individuals that you cannot find in a liquidation under Chapter 7 bankruptcy. One key advantage is that Chapter 13 allows to individuals to keep their homes when faced with a foreclosure.

Individuals can stop foreclosure proceedings by filing a Chapter 13, and they then can cure any amount owed in arrears over the life of the plan. Nonetheless, filers of Chapter 13 must make all continuing mortgage payments during the life of the bankruptcy.

Another nice advantage of Chapter 13 over Chapter 7 is that individuals are allowed to reschedule secured payments (other than real property) and extend them for the life of the bankruptcy plan. This often lowers payments dramatically.

Chapter 13 bankruptcy also has a special provision that protects third parties who are liable with the debtor on “consumer debts.” This provision may protect co-signers. Also, chapter 13 acts like a consolidation loan under which the individual makes the plan payments to a chapter 13 trustee who then distributes payments to creditors. Individuals will have no direct contact with creditors while under chapter 13 bankruptcy protection.

Technorati Tags: bankruptcy, Chapter 13 bankruptcy, debts, Foreclosure, Law, Legal, Mortgage

Shrinking economy, dwindling job scenario and unpredictable monthly incomes are making it extremely difficult for the mortgage loan debtor to pay their monthly premiums. In such troubling economic times, mortgage modification is like a breath of fresh air for all home loan borrowers to avoid foreclosures and homelessness. Mortgage modifications are essentially the reorganization of interest rates and term & conditions in the existing contract of the borrower by the mortgage lender so that they are able to afford the monthly payments.

The term mortgage modification is not new for US financial institutions as this measure was introduced during the Great Depression of 1933 to help the people from saving their homes. Since the worst downturn in the US mortgage industry starting 2006 mortgage modifications is used as a measure to:

1. Help the borrowers reach sustainable long term mortgages. 2. Generate higher returns for investors then achieved as result of foreclosure. 3. Stabilize the prices of homes which are seeing a steep decline due to growing foreclosure cases.

In order to become eligible for mortgage modification you need to convince the lender the reasons behind your inability to make monthly payments. Generally one of the following circumstances strengthens your chances of being accepted for mortgage modification plan:

1. Death or sickness of the main earning member. 2. Falling behind regular mortgage premiums – Unemployment because of recession. 3. Divorce. 4. Special consideration for members of armed forces

The date of the current approved mortgage loan, principal amount remaining and the percentage of monthly salary that is spent towards paying premium are all considered before processing mortgage modification application. While applying for mortgage modifications you need to furnish necessary documents that provide supporting evidence that you have sufficient household earnings every month to pay towards the mortgage premium. The following documents need to be submitted along with mortgage modification application:

1. Last four more recent pay stubs. 2. Previous year tax returns and other financial document. 3. Latest mortgage statement – Hardship letter, various disclosure and any other legal notices. 4. Signed 3rd party authorization form. 5. Signed Loan Modification agreement.

Mortgage modification is the most realistic and permanent solution for all debtors that want to continue living in their own homes by bringing about a reduction in existing mortgage monthly payments.

Technorati Tags: Home Equity Loan, Mortgage

A New York foreclosure defense lawyer can help enable you the means to stay in your home. With the economy in shambles, many people are losing their source of income and most importantly their homes.

Of course, we all know that the system does not always meet the needs of the people. While some banks are willing to work out a payment plan that is more do-able for you, many are not. If you do go through a foreclosure, it leaves a big dent on your credit report that is completely irreversible. If you are in danger of losing your home, for whatever reason, a New York lawyer can help fight the system and make the Judge see things your way.

Your home is one of your greatest attributes, the fact that it can be taken away from you so easily is almost appalling. Yet so many people are being forced out of their homes. It’s heartbreaking to have to watch your home be sold at auction. This is ultimately disturbing to so many people.

The help of a good foreclosure lawyer can make all the difference in keeping your home. With a bit of shopping around, you shouldn’t have a very difficult time finding one in your price range as lawyers in the foreclosure defense business understand the financial hardship that their clients are floundering in. Your best chance of keeping your home is to build a New York foreclosure defense case.

There are laws that can actually help a borrower who has been scammed by mortgage lenders. Yep, that’s right! Even mortgage lenders can get caught now and again when they lend an amount of money to a person who they know will not be able to pay it back. Once the borrower defaults on the mortgage payment, the lender swoops down and collects a nice house to sell for profit. Sadly, many people get pulled into this type of scam because they have stars in their eyes about a gorgeous house that they never thought they would qualify for (and actually don’t!).

The goal of a foreclosure lawyer isn’t just to help keep the “crooks” out of the lending business, but they also want to try their best to give homeowners a second try at keeping their home. Look on the internet for foreclosure defense lawyers in your area, and call to inquire about a free consultation. By trying to fight, you can only give yourself hope. With foreclosure as an alternative, what else have you got to lose?

Technorati Tags: attorney, financial, Foreclosure, lawyer, Legal

There are barriers to filing for Chapter 7 bankruptcy protection and receiving the benefits of a financial fresh start and putting an end to harassing creditors, and wage garnishments. Requirements for filing a Chapter 7 bankruptcy include:

- Within the last 180 days you completed a credit counseling course on the internet, on the phone, or in person from a counseling agency approved by the Court;

- The state in which you are filing must have been your place of residence for the previous 90 days. If you have not resided in the state for 90 days then you may file in the state where the majority of your assets have been located for the last 180 days or where your principal of business is located;

- A previous bankruptcy has not been dismissed within the last 180 days for (1) voluntary dismissal after a creditor has filed for a Motion of Relief From Stay, or (2) failure to obey court orders or failure to appear before the court;

- Not having filed a Chapter 7 within the last 8 years where a discharge was received;

- Not have received a discharge in a Chapter 13 filed within the last 6 years. This does not apply if you paid 70% or more to unsecured creditors in your Chapter 13 Plan;

- Average monthly income over the last 6 months is less than the median for your county OR the average monthly income over the last 6 months minus allowable expenses is not enough to pay one quarter of your debt over the next 5 years;

- Not be a financial institution, a railroad, nor an insurance company;

The requirements for who can and cannot file for Chapter 7 bankruptcy protection are found in the federal bankruptcy code. Failing to meet one or more of the requirements does not necessarily mean that you cannot receive bankruptcy protection, it may mean that you have to file a petition under another Chapter of the Code.

Technorati Tags: attorney, bankruptcy, bankruptcy attorney, bankruptcy information, bankruptcy lawyer, chapter 7, Chapter 7 bankruptcy, Credit Repair, creditors, debt, debt relief, debts, Finance, lawyer

Buying and selling real estate can be as difficult or as easy as you make it. I am here to help you make it much, much easier by using the techniques of owner financing. I want to show you the secrets of how mega-millionaires of real estate empires complete deal, after deal, after deal. In fact the bigger the deal the more likely you are to use owner financing. Owner financing is commonly used and accepted on larger deals and with wealthier sellers and buyers.

Owner Financing is a great way to raise private capital for your deals. Not only does my method of owner financing teach you to raise capital, it also teaches you how to use this same capital over and over again in the future on many more deals!

A big concern for buyers is, What if I cant sell the property after I buy it? This issue can be handled with owner financing. When you offer the right kind of owner financing to buyers you create your own market niche. Imagine what kind of interest there would get in your properties if they came with their own financing that partially anyone could qualify for. Your phone would ring off the hook with interested parties, creating more and more cash flow.

Owner Financing has the power to revolutionize the real estate world by freeing both buyers and sellers. When you completely understand owner financing, I hope you will choose to yield the sword of freedom within the investing arena.

The key is to understand the value of owner financing for both parties. And believe me, there are some incredible benefits. Once you believe owner financing is the tool that sets investors free then all you have to do is learn the different terms which can be negotiated and how they all fit together for each transaction.

Technorati Tags: buying a home, buying a house, creative investing, financing without banks, financing without using a bank, Home Purchase, no credit, nothing down, real estate, real estate investing, seller financing

Home foreclosure is a not the best situation to be in. Once the notices start coming and the phone starts ringing you can’t really keep hiding. Your going to hear from lots of people who claim that they can help you. These calls are from organizations and companies that have their own motives and goals. Beware, in desperate times even a good sales pitch may sound like a miracle. Lets take a look at what they really want.

There are a number of people who are going to send mail or call. Most likely they were able to get your address or your number from the court system. Due to the legal nature of the process your information will be deemed as public and be published. This means anyone with internet access can find you. In some cases they may get your name from a list that was generated on the web…most of these lists go to investors/ investment trust companies.

The most common people or organizations that are going to give you call:

Swindlers/Con Men

These are the ones you have to be aware of. (And there are a lot of them out there.) All of them offer promises and refer you to a chapter 13 attorney for collect a fee. In worse cases, they will take the deed of the house and force you to pay rent while leading you to believe that they can save your home and in the end you loose it all because they do nothing but take your “rent money” and skip town.

This is the most common problem you will face besides the actual foreclosure.

Mortgage brokers

They can help you by refinancing your property. However, these loans may have higher interest rates and closing costs than what you payed at the bank. Some may even charge you more to see how much you are willing to pay and take advantage of it. Not all brokers will rip you off. Over the last several years mortgage brokers have gotten the short end of the stick in the press. Shop around and ask family and friends for a referral if you decide to use a broker. (and just for the record..no I am not a mortgage broker)

Attorneys

This is your last resort. Most attorneys don’t really care about the situation you’re in or give you the attention you need.

Mortgage negotiators/Mortgage “Mod gods”

They negotiate repayment schemes with mortgage lenders. You can negotiate with the bank but in case it fails you can ask the help of a professional to get the plan approved. Some banks may impose a much more demanding plan and these professionals can get you a more favorable agreement.

Hard money lenders

These people are normally wealthy and are looking to loan you money, to cover your mortgage, at a higher interest rate. In some cases they will over to buy your house and lease to own it back to you…for a higher interest rate of course. (this may not be a bad option IF you can arrage something that works fr your financial position)

Mortgage/note holder

Your mortgage holder will call you to reinstate your house. This can be a good option depending on your situation. These are usually offered by mortgages backed by the government.

Whoever calls you or wherever the mail comes from be aware and think things through. You can stop a home foreclosure with the right options applicable for your situation. Do not throw in the towel if you don’t have to.

Technorati Tags: debt, Estate, Finance, Foreclosure, home sale, investing, investor, Mortgage, Real, relief, Wealth

Loan modification consists of working with your current lender to change the terms of you exiting mortgage from terms that are not affordable to terms that ar now affordable. It will simply change the terms of the mortgage that you currently have, instead of applying for a second mortgage.

This is a brand new loan modification initiated by the Obama administration. It is specifically aimed at home equity loan products. The program offers financial incentives to those banks that can successfully modify bad loans. This is in hope of alleviating the weight of second mortgages.

Banks have some flexibility in terms of having different programs to meet different needs. if on program doesn’t work for a borrower then another one may be more appropriate. You should also own the property in question and it should be your primary residence. The idea is to protect you from further hardship by lowering the interest rate based on your debt ratio and overdue principal.

You can start applying for a loan modification on your home mortgage if you have become more than ninety days delinquent. However, you can not purposely default on your mortgage just to get a loan modification. The lender would be requiring a documentation of your financial hardship before they can start working with you.

Be prepared for a high level of frustration when trying to navigate the loan modification process. First you have to find out the servicer or lender that currently has your home mortgage. In this economic condition, mortgages are often bought and sold. Search for your current lender at your mortgage coupon book or statement. Then, call the lender to verify if they really have your mortgage.

Lenders have different programs as well as different criteria for deciding who qualifies and who doesn’t. But all of them are relying on similar factors to grant an approval for loan modification. You should be able to prove that you’ve made all efforts to meet your mortgage payments and you should be able to demonstrate your capability to make the modified payment scheme.

You will be required to provide a hardship letter detailing what has caused your current financial situation. Gather documents of your current income and financial situation to prove your ability to make the modified loan payments. You may also need to submit a detailed monthly expense report.

It’s in the best interest of the lender to work out a modification as the alternatives are going to be quite costly for the bank. Banks would rather grant a loan modification than letting their borrowers default on the whole mortgage. This makes a perfect business sense to the financial institutions and the best alternative for you as a homeowner.

Technorati Tags: Foreclosure, loan modification

The traditional real estate market has really taken a hammering in recent times. There is a foreclosure crisis, more homes are being repossessed by the day, No matter what plans are being put in place by Federal and State Government, it will be too late for many more home owners to save their property, their credit, and in many instances, the last shreds of their dignity. If you want to know how to buy a foreclosure, keep reading.

We are not blowing matters out of proportion with our opening paragraph, all of this is true, but the good thing is that property investors are getting in to clean up the market. Some may call them vultures, but they serve a real purpose, just as real vultures do. These investors clean up the foreclosure market buying and selling, which stabilizes the economy as well as adds value to the real estate market. With out these purchases and sales taking place, real estate would lose even more value than it already has.

The lender won’t get the full amount, but they certainly may get a great deal more than they might if the foreclosure went ahead. Foreclosures are very expensive, costing in the region of $50,000 and they can take a very long time to complete. In New York for example, it may take up to 18 or 24 months to complete, and in that entire time the debt on this property is a non-performing asset.

There is a way a home owner is able to do this with the help of and investors; in fact there are two ways to arrange a sale in pre-foreclosure. The short-sale and the short-sale buy back.

A short- sale has to be authorized by the lender which owns the lien over the home owners mortgage. It can only be authorized once the mortgage has gone into default and the home owner is able to impress upon the lender that he is encountering serious financial difficulty. This is not that hard to prove if serious financial difficulty is being experienced.

The home owner has to be careful regarding the investor he uses in a short-sale of a short-sale buy back, because there are many scam artists preying on people who have misfortune of being foreclosed on. So he needs a attorney who is versed in the short-sale process.

The investor wins if he can make a profit, the lender wins if they can get as much of the debt owed on the property sooner than later, and the home owner wins too. They are released from paying a mortgage they can no longer afford in a property with little or no equity and they salvage some of their credit record. Not all of it, but every little bit helps.

A short sale still means that the home owner will have a bad credit score, but not foreclosure on their record. It may be easier to recover from this slightly smaller blow, than it might be to have to recover from a foreclosure or a bankruptcy.

Technorati Tags: Buy Foreclosure, buying foreclosures, Foreclosure, Foreclosures, How To Buy Foreclosures

The process of foreclosure various in all 50 states. If you find yourself headed towards foreclosure and you have no means of making your payments – it is advisable that you take a good look at the foreclosure laws in your state.

Each states foreclosure laws differ in a variety of ways such as lender notices, scheduling, buyback periods, and bank notices issued regarding the auctioning of the property. Do to the complexities of the foreclosure timeline this article is only meant to give you a basic understanding of the process.

When you first miss a payment, the lender will contact you by phone, and or mail and a late charge will be added on to your payment. In most cases a late payment isn’t tacked on until after the 15th day. The majority of lenders will work with you if you give them a call letting them know your current situation before the payment is late.

If 30 days have gone by and you still are unable to make a payment the mortgage company will begin the old harassment tactics. By that I mean the annoying phone calls. There goal is to find out why the payment hasn’t been made. Avoiding these calls is a critical mistake. Although you are way behind it still isn’t to late to attempt to open the lines of communications.

During your communications with the lender you want to try to avoid having them put a 30 days late mark on your credit report. A late notice like this could KILL your credit score. This is something that you want to avoid if possible.

Even if your property has been sold you still have what is known as a redemption period. You can reclaim your property by paying the full outstanding mortgage balance and all costs incurred during the foreclosure process. This is the only way that you will stand a chance at getting your home back. Also keep in mind that that the availability of this process is determined by whether the foreclosure is judicial or non-judicial and procedures can vary from state to state.

Technorati Tags: bank foreclosure, bank loans, Foreclosure, foreclosure aution, foreclosure timeline all 50 states, mortgage foreclosure, mortgage foreclosures, real estate