Foreclosure in 33140>Question Details

Luna, Home Seller in Miami Beach, FL

My only debt is my mortgage and hoa, i am going in foreclosure. Should i file bankruptcy?

Asked by Luna, Miami Beach, FL Mon May 4, 2009

I lost my job 5 month ago and all my bills are totally behind. I am going in foreclosure and have no
other choice. The hoa's are higher than my mortgage, it's all piled up for me.
Besides that debt i owe nothing, i paid for my car almost 7 years ago and i have no credit cards
or other loans.
What happens if i go into foreclosure and don't file for bankruptcy? What can they put a lien on?

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Answers

5
Hi Rob
Not easy ,but first of all call your lender and see if they can help you here also check out this website http://www.makinghomeaffordable.gov/ it is designed for people facing hardship like you.
also find an active reputable realtor who most definitely can guide you and help you.

Good Luck
A.J.Zaki
c.561-843-7010
http://www.homefindersinflorida.com
1 vote Thank Flag Link Mon May 4, 2009
You have been provided lots of usefull information already Luna, but to answer your question from my point of view ,(I'm Not an attorney ) legally after the foreclosure sale if theres a deficiency amount , its very possible the lender can file a judgement law suit against you for this defieciency amount. All depends if you have any equity left on your property , which most homes dont at this time. Please feel free to contact me with your property address to provide you with an evaluation and explain to you your alternate options and possibly avoid a foreclosure. Act soon before its too late
0 votes Thank Flag Link Wed Jan 6, 2010
Luna, this is a good question. In the event you have not credit cards behind and having is association and mortgage payment behind you have an option better than go to bankruptcy and foreclosure and this is a short sale. I don't think a modification can work for you without job.
If you need more information, please don't hesitate to contact subscriber at
Nereida Figueroa
Short Sale Specialist.
305 519-3199
0 votes Thank Flag Link Mon Dec 28, 2009
You asked: "...What happens if i go into foreclosure and don't file for bankruptcy? What can they put a lien on?"

As stated by Keith, this is a question better asked to a competent real estate/bankruptcy attorney.

My beef with foreclosure is that forever and ever, even after the foreclosure is off your credit report, you must ALWAYS answer 'Yes' to the quetion "Have you ever been in foreclosure" if ever asked in any application. For people in certain positions of trust, this may also affect employment opportunities and if you are in the military or similar organization requiring special clearances, your job or promotion opportunities may be shot.

Lenders want to see capacity to repay but they also want to see character. A foreclosure tells lenders that, even in the wake of so much assistance to homeowners during these diffucult times, you opted for foreclosure rather than a work-out.

While a bankruptcy will also affect your credit for a long time, it is a type of work out. Over time and as you continue to pay your other creditors on time, etc, not only will the negative mark eventually fall off your credit record and your score improve, creditors will see your character in a different light.

When you own property, a Chapter 13 bankruptcy is the most typically form of individual bankruptcy used to protect your property. As I understand it, if you've been denied a modification, the bankruptcy judge now MAY be able to renegotiate your loan for you within the context of the bankruptcy. This is why you MUST seek the advise of professionals in their particular field of expertise.

While this attorney may not be able to help you determine the right way to sell your condo unit in a short sale, they can definitely guide you through all your legal alternatives. As a matter of fact, a competent attorney who is also able to file suits in federal court and thoroughly familiar with lending matters can foresically review your lending documents to see if no federal statutes (predetory lending, interstate, usury, RESPA or other) were violated.

If they find no violations, they can give you advise based on that. If they do, they can guide you through a "non-voluntary" modification where you are in a better negotiating position against the lender.

In combination with a competent Realtor who is a Certified Distressed Property Expert and tax expert, you can overcome this and come out the other end better than going at it alone.

All the best.
0 votes Thank Flag Link Wed May 13, 2009
You really talk to a bankruptcy attorney about what bankruptcy given your situation.

If you let the property go to foreclosure, a couple things can happen:

. Typically the banks are not going after defiecencies but you need to verify there polciy with the bank.
. If you have a second mortgage this can create a issue with a judgement after foreclosure that they will want to collect
. The foreclosure will be on you record for at least 7 years and will hit your credit score by 200-300 points and prevent you from buying another property for 5 years (according to current Fannie Mae Underwriting guidelines)
. Bankruptcy can be on your credit report for 10 years an will hurt your credit for a long time.
. A short sale (selling the property for less than the mortgage with lenders approval) will allow you to purchase a property sooner but most likley will have a simular hit on your credit score depending how the bank processes to credit reporting. (it may not be reported negatively but typically is)



Good luck and talk to a attorney


Keith Manson
First Weber Group
Certified Distressed Property Expert
Greenfield,Wisconsin
0 votes Thank Flag Link Tue May 5, 2009
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