Real Estate Agent with Rosen&Company West


Everywhere you look there's ads for Loan Modification - it's becoming like one long billboard.  Law Firms popping up on TV and on the Internet telling you how they know more than anyone wears ties how to save your home through Bankruptcy.  Of all the shysters out there trying to steal your money in the guise of saving your home is the dirty stinking lawyers. Lawyers are scum. They lure you in with promises of interest rate and principle reductions that they can't keep. They tell you new laws are coming from the Obama Administration any day.  All these new laws are coming that will help you out of a jam. 'Don't you worry, by the time you get up in front of the Trustee the new law you were counting on will have passed both houses.' Don't count on it.  Here is what happens when you file a Chapter 13: If there is a pending foreclosure sale on your property that sale is stopped immediately. You then must produce financial documents that prove you can handle a payment plan. If you can demonstrate to the court that you can make payments then you have to start paying on your first within a month or two after the filing plus make good on all of your arrears payments which are tagged onto the Chapter 13 Payment Plan.  So if you are behind say $12,000 on your loan you pay that off in a five-year payment plan to the Trustee. If you have an IRS Tax Lien that goes into your payment plan also.  Let's say your tax bill is $18,000 - so here is how it works.  Tax Bill- $18,000/60 months = $300  Arrears Debt - $12,000/60 = $200  Regular Monthly Payment $2150 per month.  This scenario brings you to $2650 per month.  The good news is your second gets wiped out in a Chapter 13 so you will probably be making about the same size payment you were making on your first and second for five years while your getting rid of your current tax debt and arrears debt on your loan.  If you are currently earning the same or more money than you were when first got in trouble it's not a bad deal, especially if your second was twenty-percent or better of the entire loan amount. But what if you are not making what you were making a year or two ago.  I think this may be the more likely scenario for many people.  You may be working but your spouse lost that cushy job with the county.  Or you got laid off and your wife's hours got cut or both of you aren't working and your running through your savings and calling up your favorite rerelatives - buttering them up and telling them how much you love them just in case you have to ask them for some money in the near future.  If any of these things have happened, and chances are they have, or you wouldn't have defaulted on your loan in the first place, then Chapter 13 may not be the ch-eerie paradise the Attorneys claim it is.  Most of the time you are better off working out some kind of Loan Modification Plan with the bank on your own or hire a guy like me who works cheap and tries hard to get you a reduction.  A lot of times the bank will roll your arrears payments back into say a thirty-year loan so you are only paying say $75 more a month instead of $$200.  If you are facing foreclosure and have to file you Chapter 7 Bankruptcy will stop a sale.  You can't use it to go into a payment plan with the court but it will stop the sale and you still have the opportunity the work out a plan with your lender.  Most Lenders will try and make a deal with you. Unless you have tons of equity in the property and you living right on the beach, they don't want your house - they have enough houses.  They have to foreclose on you - fix the property up for resale and then re-market it at current market value.  So, it really is not in their best interest to kick you out of the house if they don't have to no matter how tough they act.  There are several ways to get free help and if you contact me I will refer you to those sources. If you do have to file Bankruptcy ssometimes as good paralegal that's hooked up with a law firm is the best way to go. They are a lot cheaper and if they work in bankruptcy only they will do a more thorough job than some ambulance chaser that just got in the Bankruptcy business to cash in on all the action.  Best thing to do if you are in trouble is to keep talking to the bank - don't ignore them.  Ignore them and you'll get an NOD in the mail and in 35 days a Notice of Foreclosure Sale.  Call them - tell them you want to keep your home. they will usually send out a packet for you to fill out - financials - hardship letters and such.  Get that into them. If they see your are trying to be proactive they won't be so fast to drop the hammer on foreclosing.  Try and keep a cool head.  And again you can contact me Rob Basichis at this site or call me at 702-279-8025.  Good luck.   


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