Sunday, March 28, 2010

Why do people file bankruptcy when they are in foreclosure?

The first and main reason why people file bankruptcy is because they went to a bankruptcy attorney and asked him for advice.
What advice do you get from a bankruptcy attorney?
Well, he'll tell you to file bankruptcy of course... why?
Because that's where he makes his money!

I really hope that this will open your eyes if you ever consider filing bankruptcy.

People facing foreclosure are simply desperate and need help. Bankruptcy is not always a solution. I strongly advise people to go to look at the different options available to them and there are many.

Options such as deed in lieu, forbearance, loan modification or short sale need to be considered and all avenues need to be looked at.

One thing is certain and that is that once people stop paying their mortgage they have time to look into all these solutions, even when served with a foreclosure notice there's plenty of time.

My dad used to say " the soup is never eaten as hot as when it is served"

So don't panic, face the situation and start actively searching for solutions, don't stick your head in the ground and hope that this will go over... it won't!

I am still a big advocate of "the short sale solution".

The short sale, a transaction in which the lender accepts less than the balance owed on the mortgage.

A short sale will give you debt forgiveness, it will also give you plenty of time to enjoy your home for free whilst negotiating the short sale and it will be reported to the credit bureaus as a "settled debt".

Beginning April 5, under new Treasury Department rules, short sales will be presented as the potential next step for homeowners who are rejected by or fail to make the grade for the federal Home Affordable Modification Program (HAMP).

The new directives are a "push" to get lenders to accept Short Sales, there's even an additional government aid to cover moving expenses for the selling homeowner in the form of an up to $1,500 cash back at closing.

MonkeySold has been negotiating short sales for over 3 years now and has seen millions of dollars forgiven for it's clients. By using a unique combination of investors, lawyers and expert real estate agents, MonkeySold has been assisting homeowners who are facing foreclosure either stay for a longer period in their homes or sell the home fast.

The MonkeySold solution is unique and although it might be advisable to get it all over quickly it might be necessary to hang on to the home a bit longer. Depending on the hardship being temporary or permanent MonkeySold works out a "tailor-made" solution focused on the homeowners needs.
Reblog this post [with Zemanta]

Stumble Upon Toolbar

Add to Technorati Favorites

View blog authority
Real Estate Blogs Directory
- Directory of real estate blogs and blogs of industries affiliated with and
serving the real estate industry.