I have a client that was told they would be able to keep their home that was in foreclosure if they filed bankruptcy and that the bank could not

Asked by Shortsalewomen, Indianapolis, IN Mon Nov 2, 2009

take it back then, everything I have been taught says this is not so true. I have found some bankruptcy attorneys to not only know very little when it comes to real estate but they have advised my clients wrongly in that bankruptcy is the only answer, yet they are not giving out the whole story to the clients. Please enlighten me...Thank you.

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Ken Fisher, Agent, Fishers, IN
Tue Nov 3, 2009
You should contact a real estate attorney not a bankruptcy attorney for your information. ( You should not use a tire store to replace the engine on your vehicle). There are two kinds of states, judicial and non-judicial. In one, you must file bankruptcy in order to contest a foreclosure but not in the other. As I understand it, when you contest, you demand that the actual note and mortgage be presented as evidence of the claim. In many cases, the notes have been securitized and no longer reside with the mortgage. The mortgage holder cannot sue with the note and the note holder cannot sue without the mortgage. Always seeks a qualified attorney for specific details.
2 votes
Colby Leonard, Home Buyer, Indianapolis, IN
Mon Nov 23, 2009
Bankruptcy can stop foreclosure if you file Chapter 13. This allows the home buyer a chance to catch up any mortgage arrears over 36-60 months. If they file Chapter 7 and their house is in foreclosure, then you are correct, bankruptcy just slows down the process; it is not a fix. Some bankruptcy lawyers may say what people want to hear to get their business, but inethical practices like that exist in all professions, not just lawyers. Most bankruptcy attorneys are so overwhelmed with business right now that they don't need to lie to get more clients; there are plenty to be had that we can and do help with the truth and a fair disclosure of options available to them.

1 vote
Minna Reid, Agent, Woodbridge, CT
Tue Nov 3, 2009
The bank can't take any action until either the bk is discharged (3-6 months) or unless they petition the judge to pull the house out of the bk so they can go ahead and foreclosure. BK is a band aid for foreclosure - it'll slow it down, but it can't stop it forever.
The client will be discharged from the note, however the bank can and will come for the collateral eventually.
Web Reference:  http://www.homesbyminna.com
0 votes
James Gordon…, Agent, Hamilton, OH
Tue Nov 3, 2009
A bankruptcy attorney does not make any money unless they have clients. A new attorney needs clients badly. Remember you can not offer legal advise. You may not know the whole picture and bankruptcy may be the way to go for these people. Your client may have heard what they wanted to when the bankruptcy attorney told them that a bankruptcy stops the forcloseure action. They may not have heard or the attorney did not say that the lender can file with the bankruptcy court and get the forcloseure moving again.
Web Reference:  http://www.Find1Home.com
0 votes
Jim Walker, Agent, Carmichael, CA
Tue Nov 3, 2009
An attorney fresh out of law school is an Attorney . An agent with twenty years experience is just a saleswoman.
Knowledge and experience must bow down to the mighty diploma.
0 votes
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