I have a question regarding bankruptcy and foreclosure in California.?

Question

My husband lost his job in October and I am a student, so we have no money coming in except for a pittance from unemployment. We had some savings and he cashed in his retirement, but we are almost out of money. We put our condo on the market in December, but so far no takers. My husband has relatives in Las Vegas who have invited us to live with them temporarily, so my husband went after Christmas and began the job-hunt. We are now considering foreclosure and/or bankruptcy, but neither of us know much about either process. Can anyone either explain these processes to me, (in English - not Legalese), or direct me to a website that I can understand? I need to know everything, such as: Do I have to file in California or can we do this in Nevada? Do we contact the lender about foreclosure or is this something they do automatically? (They have been completely unwilling to work with us even though we have never been late on a payment.) Any advice/info would be greatly appreciated.

Answer 1

Bankruptcy is the final step in protecting your assets.

Now you should stop talking with those telephone clerks at your mortgage company. Call the mortgage company and demand to speak with someone in the Loss mitigation department.

Once you have someone from that department, ask them to explain your options. They are

#1 Deed in-lieu-of foreclosure

You sign over your property to the bank instead of them foreclosure. Even if you are in foreclosure this is still an option

#2 Short Sale

You will be authorized to sell the property for just about what the loan amount is or somewhere around that price.

#3 Forebearance Agreement

You will be able to keep the property. All your late monthly payments and any late fees to include any foreclosure fees will be added together and placed as a 2nd mortgage on your house. You will be required to make your regular monthly payment what ever that is, as well as make a payment each month on your late payments.

This option can only work if your husband is back to work and you can prove to the lender that you can make the both monthly payments according to federal and state guidelines, as well as your other monthly debts that you owe.

Depending on what chapter of bankruptcy you file will determine if you will have to pay anything back or not

#1 Chapter 11 bankruptcy

This type allows you to recorganize your financing, for you to make monthly payments to the people you owe through a court appointed trustee. You draw up a document that you outline your plans as to how long it will take you to get back on your feet and the amount you can realistically pay per month. Once this time has expired your bankruptcy ends.

Chapter 7 bankruptcy

This type bankruptcy completely liquidates your holdings to pay off any debts you owe. Your home will probably wind up with the lender as payment to your mortgage.

All other un-secured debts will be liquidated. After this bankruptcy you will no longer owe a soul on this earth or at least the ones you place in the bankruptcy. It is suggested you completely do all your debts to include any private debts owed friends and family that do not show up on your credit report.

I hope this will be of some use to you, good luck.

"FIGHT ON"

Answer 2

You can find the best solution for you at: PROTECTIONQUOTING.NET-

RE I have a question regarding bankruptcy and foreclosure in California.?

My husband lost his job in October and I am a student, so we have no money coming in except for a pittance from unemployment. We had some savings and he cashed in his retirement, but we are almost out of money. We put our condo on the market in December, but so far no takers. My husband has relatives in Las Vegas who have invited us to live with them temporarily, so my husband went after Christmas and began the job-hunt. We are now considering foreclosure and/or bankruptcy, but neither of us know much about either process. Can anyone either explain these processes to me, (in English - not Legalese), or direct me to a website that I can understand? I need to know everything, such as: Do I have to file in California or can we do this in Nevada? Do we contact the lender about foreclosure or is this something they do automatically? (They have been completely unwilling to work with us even though we have never been late on a payment.) Any advice/info would be greatly appreciated.

Answer 3

I've got a solution. If you have equity in your home why not use the equity towards purchasing an inexpensive condo in Las Vegas. (you can always say it's going to be rental property) You've never been late on a payment so the bank will have no idea your husband lost his job!!Then you can let California foreclose on your home and you'll already have a new one. If you wait until after the foreclosure you will be shoot out of luck. Bankruptcy is easy. I did it myself in California and it cost me under $200. You can get all the necessary paperwork at any office supplies store. Trust me it's better than paying at least double if not more to an attorney to do the same thing!!

Answer 4

In a forclosure, you stop paying your payments, and after a few months the bank takes over the house. They then sell it and put that money toward what you owe. You want to avoid this as much as possible. It seems easy, but kills your credit and still leaves you owing money. It will limit your home purchses for many years.

In a bankruptcy you will be allowed to keep your home, and some or all of your other debts will be forgiven. This leaves you still owing the mortgage each month, but gets rid of some of the other debts. Again your credit is ruined as is your ability to purchase another place.

If you do not have equity in the home, a short sale would be a good option. This is where you tell the bank you can no longer afford it and they allow you to sell the home for less than you owe. It saves your credit but leaves you with no money, and you owe taxes on the difference of what you owed versus what it sells for.

If you have some equity, your best bet is to just sell the place for less than it is worth. If you price it at 10-15% less than others in your neighborhood, you should be able to get some offers quickly. Just make sure your Realtor is working for you. You need to get this place shown to as many buyers as possible.

Answer 5

First off sorry to hear your are having hard times.

Drop your price to walk away price. First rule when you are in a hole stop digging, there is nothing wrong with Zero and walk since you have one foot out of So cal anyways.

If you have bought your condo in the last three years you may be screwed due to the bubble they made.
http://www.breakingbubble.com/index.htm

If that is the case wait till they take the home or you are ready to go and hand the keys to some one homeless guy for 50$ to fill the gas tank and go to Vegas, this will really piss off the lender but they can not prove any thing.

Back in the 80 many people were just throw the keys in the mail box, and going on cash for the next 7 years.

Best of luck

Answer 6

The only advice I can give you is NOT to go into foreclosure. If anything file bankruptcy. In the future if you plan on buying another house and you have gone into foreclosure you will have a REALLY HARD time finding someone to lend you the money. Where as bankruptcy's dont look as bad.

Answer 7

are you able to save your place from foreclosure via submitting financial disaster in California? submitting financial disaster triggers the computerized stay which stops all lenders from any action to collect their declare which includes foreclosure. In financial disaster 7, the stay lasts in basic terms as long because of the fact the valuables isn't deserted via the trustee as the two valueless to the valuables or as exempt, or until the case is closed. A creditor secured via the abode can seek for relief from the stay to end the foreclosure if there is threat that the secured declare will develop into greater beneficial than the cost of the protection in the process the financial disaster. because of the fact the creditor's lien isn't eradicated via the financial disaster, financial disaster 7 factors in basic terms non everlasting relief from foreclosure, yet no lasting answer. in case you have any fairness you're able to attempt to sell your place to genuine factors broking provider for the payoff of your own loan.

Answer 8

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Look forward to speaking with you,

Nadine Lottihall
Senior Referral Agent
Consolidated Solutions Group LLC

Phone: [phone] ext. 411
Email: [e-mail]
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Website: http://www.consolidatedsg.com/nadinelottihall/fc