Archive for the ‘las vegas home foreclosures’ Category
Tuesday, August 30th, 2011
Many people in Las Vegas are behind on their mortgages. Worse, many of them owe more to the banks than their houses are worth. Negative equity and inability to pay bills can be a nightmare.
Often, people hear about two common options: foreclosure and short sale.
Foreclosures, of course, occur when the bank chooses to repossess a debtor’s home. Short sales are when the homeowner and the bank agree to the homeowner’s decision to sell the home for less than the balance of the mortgage. The bank may choose to forgive the deficiency, but they frequently do not.
Homeowners facing these problems may be future-oriented and wonder what affect foreclosure and short sales do to their credit scores. Here’s our answer, courtesy of the New York Times.
(1) In a short sale with no deficiency, the former owner’s credit score will be manageable within nine months or so of consistent payments. While this won’t instantly qualify someone for a new mortgage, it will help with other kinds of credit.
(2) Foreclosure damages credit more significantly than short sales do. The Times article provides two examples: one can return to a 680 three years after foreclosure, provided he or she makes regular payments. Returning to a 780 takes seven years after a foreclosure. Clearly, this is something homeowners want to avoid.
(3) As always it’s better to file bankruptcy than allow a pile of unpaid bills to mount. Bankruptcy is an act of fiscal responsibility, contrary to popular belief. Some homeowners may be better off short-selling or offering their deeds to the bank in lieu of foreclosure and filing bankruptcy on the deficiency than accepting foreclosure.
(4) As to borrowing a fresh mortgage, the Fair Housing Administration (FHA) provides guidelines for the wait-period between losing a previous home and obtaining approval for a new mortgage. Those whose houses suffered foreclosure will wait the longest, often seven years. For bankruptcies it’s four years. If the homeowner fell into financial hardship because of a lost job, illness, or divorce, the FHA creates exceptions. These exceptions can reduce the wait-period to two to four years.
We cannot stress enough the importance of seeking an experienced bankruptcy attorney when faced with unpaid mortgage bills. If this describes your situation, waiting for foreclosure will do more harm than any other course of action.
For more questions about bankruptcy in Las Vegas, please feel free to contact an experienced Haines & Krieger Las Vegas bankruptcy attorney for a free initial consultation.
Tags: credit, henderson, las vegas short sales, las vegs foreclosures, nevada, north las vegas, nv
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Tuesday, July 5th, 2011
National banks that took federal bail-out money also agreed to participate in government home modification programs. These banks have created in-house loan negotiators to assist in home-loan modifications, which may reduce loan principle or interest to adjust the loan to an affordable rate. Many American homeowners have applied for these programs, but few have been approved. In many cases the empty promise of home loan modification leaves the homeowner in a worse position than when he started.
It has become clear that these banks are simply not playing fair. Several lawsuits have been filed against national banks alleging fraud. A federal lawsuit was recently filed by the State of Nevada Attorney General against Bank of America, the nation’s largest home loan servicer, alleging deceptive practices. Additionally, a class-action lawsuit against Bank of America is pending in Massachusetts federal court. These suits claim that Bank of America deceived consumers into depleting their savings by making mortgage payments based on false hopes they’d be eligible to modify their home mortgages. The lawsuits allege that BOA accepted $25 billion from the U.S. government in 2008 as part of the Troubled Asset Relief Program (TARP), but has failed to participate in programs such as the Home Affordable Modification Program (HAMP) aimed to minimize foreclosures.
If you are in need of a Las Vegas home loan modification, review your options with an experienced Las Vegas bankruptcy attorney by calling 702-880-5554 or by visiting our Las Vegas bankruptcy appointment scheduler . Many bankruptcy debtors are able to strip away a second or third mortgage, or pay past-due payment over three to five years. Bankruptcy debtors can also apply for government programs such as HAMP during the bankruptcy case, while under the protection and supervision of a federal bankruptcy court judge.
Tags: blue diamond, boulder city, henderson, las vegas bankruptcy attorneys, las vegas home loan modifications, lawyers, mesquite, north las vegas, summerlin
Posted in bankruptcy in las vegas, bankruptcy in nevada, haines and krieger, las vegas bankruptcy, las vegas bankruptcy attorneys, las vegas bankruptcy information, las vegas bankruptcy lawyers, las vegas home foreclosures, las vegas home loan modification, las vegas loan modification | No Comments »
Wednesday, March 16th, 2011
If you are a Las Vegas homeowner who owes more money on your mortgage than your home is worth, there are a several options for saving your home. One of the latest is an $11 billion program through the Federal Housing Administration called “Short Refi.” Under this program a non-FHA borrower may be able to obtain a new FHA-insured mortgage.
To qualify for the Short Refi program, the homeowner must be current on the monthly mortgage payments. The new primary FHA-backed loan cannot exceed 97.75 percent of the value of the property; and the second mortgage cannot exceed 15 percent of the property value. Additionally, the lender must agree to write off at least 10 percent of the loan’s principal balance.
Fannie Mae and Freddie Mac loans do not qualify for the Short Refi program. The New York Times reports that 23 lenders have signed on to the Short Refi program and are offering refinancings. Notable non-participants are Bank of America, Citibank, and JP Morgan Chase.
There are several programs available to save an underwater mortgage, so the homeowner is not stuck with a “one-size-fits-all” refinancing dilemma. One federal refinance program that has seen some recent success is the Home Affordable Refinance Program (HAMP). Refinancing a mortgage under HAMP during bankruptcy is specifically authorized and can save the homeowner significant money when combined with a bankruptcy discharge. Additionally, debtors in Chapter 13 bankruptcy may be able to strip off a second or third mortgage if the loan is entirely unsecured. For instance, if the value of the home is $200,000, and the first mortgage is $200,000 or more, then any additional mortgage or lien on the property would be entirely unsecured and could be stripped off during Chapter 13 bankruptcy.
If your home is underwater and you are struggling with debt, speak with an experience Haines & Krieger bankruptcy attorney and discuss your options. Call us at 702-880-5554 to set up your free consultation. In many cases you can discharge your unsecured debt through bankruptcy and refinance or modify your underwater home loan to new, affordable terms. Get the facts about rescuing your underwater mortgage today.
Tags: boulder city, FHA, henderson, homeowners, las vegas, north las vegas, refinancing, short refi, underwater mortgages
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Monday, February 28th, 2011
The economic downturn has had a far-reaching affect. The mortgage crisis created a new victim: the family pet. As more families lost their homes to foreclosure, more pets were abandoned or left at animal shelters. USA Today reports that some pet owners are leaving pets in empty houses and garages with some food and water. Often these abandoned animals aren’t found for days or weeks and are dead or dying.
Before you decide to walk away from a home and turn your back on a family pet, consider how the federal bankruptcy laws can help your financial situation. First, there are options to keep your home during bankruptcy by paying arrearages over time, stripping away an unsecured second or third mortgage, or buying needed time to qualify under a home loan modification program.
Contrary to widespread misinformation, you do not have to give up your pet when you file bankruptcy. The judicial trend is to recognize pets as more than property. In a recent case from the U.S. Bankruptcy Court for the District of Maryland, a Chapter 13 debtor was allowed to claim pet care expense in his bankruptcy plan over a trustee’s objection. The judge in that case found that a family pet should not become “a helpless casualty of a family’s financial crisis,” and “as long as the Debtor is ready and willing to provide the pet with a loving home, the Debtor should not be prevented by the bankruptcy process from continuing to do so.”
Family pets, or “companion animals,” are not limited to dogs or cats. In the case of In re Gallegos, a U.S. Bankruptcy Court in Idaho held that a pet horse, although residing outdoors, could qualify as a “household pet.” In Gallegos the judge held that “[i]t is more the fact that an animal is held primarily for the enjoyment and companionship of its owners, and not for some other reason, that makes the pet a member of a debtor’s household.”
Like any other monthly expense, pet care expenses must be reasonable. One bankruptcy court found that spending $100 for the care of two dogs was reasonable, while another court found that $750 per month for pet care expense was not reasonable.
If you are struggling with debt and need help with your finances, consult with an experienced Haines & Krieger bankruptcy attorney at 702-880-5554 before making any important and long-lasting decision. You owe it to your loved ones to consider all the available options before deciding on a course of action.
Tags: bankruptcy, foreclosure, las vegas, pets
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Thursday, February 3rd, 2011
You’re facing foreclosure in Las Vegas. You’re not sure how everything works or will proceed going forward. Should you file for bankruptcy? Will it help in some way?
The answer is: It depends.
- If you don’t have enough money to pay off your mortgage, then filing for bankruptcy is the only way to prevent foreclosure. Of course, that doesn’t mean bankruptcy will save your home in every situation.
- If you’re not worried about saving your home but you have a second mortgage and want to relieve yourself of that debt burden, then Chapter 7 may be the right path for you. While Chapter 7 can not always prevent foreclosure since a mortgage is a form of secured debt, it can be used to convert a second or third mortgage into unsecured debt. And that debt can be wiped away in a Chapter 7 bankruptcy filing.
- If saving your home is important to you, then Chapter 13 may be the way to go. Under a Chapter 13 bankruptcy, you work out a payment plan over 3 to 5 years. If you have sufficient income or assets that you can work out a mortgage payment plan and stay current on your mortgage, then you can use Chapter 13 to help you stay in your home.
If you’re dealing with foreclosure in Las Vegas, you can always contact an experienced Haines & Krieger foreclosure and bankruptcy attorney for a free initial conversation or consultation. You can reach us at 702-880-5554.
Tags: attorneys, bankruptcy, chapter 13, chapter 7, las vegas foreclosure, nevada, payment plan
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Wednesday, January 26th, 2011
As the Las Vegas foreclosure crisis continues to cause problems, so does the prevalance of foreclosure rescue scams.
These are companies that say they can help you avoid foreclosure. But here are 4 things to know to make sure you don’t get caught up in a foreclosure rescue scam:
1. Don’t listen to them if they tell you to stop paying your mortgage. If you stop paying your mortgage, you can be foreclosed on. The only other ways to stop foreclosure are to sell your home, or to negotiate a “deed in lieu of foreclosure” agreement with your mortgage lender.
2. You don’t need a foreclosure rescue company to negotiate a mortgage modification. You can actually do it yourself. If you’re not comfortable doing that, then work with an experienced and trustworthy bankruptcy attorney. There’s little regulation of foreclosure rescue companies. But there is a great deal of oversight for attorneys.
3. Do NOT pay any upfront fees to a foreclosure rescue company or any other such agency. If they want up front fees it’s most likely a scam. The only time you should pay an up front fee is when you pay a bankruptcy attorney to file your case for you.
4. The only legal (i.e., law-related) solution for dealing with foreclosure is bankruptcy. Don’t believe any foreclosure rescue companies or debt consolidation or credit counseling businesses that claim there are other legal solutions.
To set up a free Las Vegas bankruptcy consultation, visit our website or call 702-880-5554.
Tags: attorneys, bankruptcy, free consultation, home foreclosure, las vegas foreclosure, law firm, lawyers, mortgage, rescue
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Thursday, January 20th, 2011
Realizing that you can no longer pay for your Las Vegas home means that you have difficult decisions to make. While modification and even lien stripping in bankruptcy may be options for some, if you truly cannot afford to keep your home, you must decide on the best way to walk away.
Do Nothing
If you do not pay your mortgage payment, the lien holder will foreclose on your property. Although not paying your mortgage payment and the resulting foreclosure will significantly harm your credit rating, the home finance industry is presently in such turmoil that it may be months to more than a year before the lien holder forecloses on your property. During this time you live rent free and can save for the future. Note that if you do not maintain insurance and do not pay real estate taxes, the foreclosure timeline will likely accelerate. Also note that under the Mortgage Forgiveness Debt Relief Act, which extends through 2012, income normally attributable by the IRS in connection with a foreclosure is not taxable, although you may be liable for a deficiency balance when the home is sold for less than you owe. A foreclosure is listed as a public record on your credit report and the late payments are also reported.
Deed in Lieu of Foreclosure
Some financial “experts” have advised distressed homeowners to “just walk away.” Walking away from a home is easier said than done, since you still own the home and are legally responsible for the property in a variety of ways. One way to legally “walk away” is to transfer title of the property via a Deed in Lieu of Foreclosure. Now the lien holder owns the property, which may sound pretty good until the property is sold for less than you owe, triggering a deficiency balance. You may also end up owing taxes on the difference.
Short Sale
A Short Sale is a sale for less than what is owed by the seller. A lender will sometimes agree to allow the property to be sold for less than you owe if it is clear that you are unable to continue paying for the property and the home is upside-down. In many cases the Short Sale deficiency is forgiven by the lien holder, but that will depend on the lender and on state law. A Short Sale is identified as a settlement on your credit report and will hurt your score, although not as much as foreclosure or bankruptcy.
Bankruptcy
A bankruptcy is a legal discharge of your debt. It is the cleanest and most powerful option to “walk away” from the home with no contract or tax obligation. A bankruptcy uses the power of federal law to stop further negative credit reporting and collection attempts. In the end your credit report identifies the loan as “Discharged in Bankruptcy” with a “Zero Balance.” The bankruptcy record will stay on your credit report for up to ten years, but by surrendering the property you will avoid a foreclosure on your record.
If you need to walk away from your home and are weighing your options, consult with an experienced Haines and Kreiger bankruptcy attorney by calling 702-880-5554 and learn how the federal bankruptcy laws can help. Bankruptcy can provide you time to move without foreclosure and without owing money in connection with the home.
Tags: bankruptcy, clark county, deed in lieu of foreclosure, foreclosure, las vegas, mortgage, nevada, nv, short sale
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Tuesday, November 16th, 2010
Las Vegas home foreclosures may be delayed afterall. And if you’re facing foreclosure, you may get a bit of breathing room.
Nevada’s Attorney General Catherine Cortez Masto is requesting banks and mortgage lenders to extend their foreclosure moratorium to Nevada as well. Despite the fact that Nevada is a “non-judicial foreclosure state” (discussed in a previous post here), AG Masto has expressed concern that proper safeguards may not have been in place throughout the mortgage lenders’ foreclosure processes.
The biggest concern is that many banks and mortgage lenders may not be able to produce evidence of ownership of the mortgage. That is, they may not have the right to collect mortgage payments and in turn they may not have the right to foreclose on homeowners.
As a result, homeowners in Las Vegas and elsewhere are increasingly challenging banks and mortgage lenders to produce proper documentation.
If you have foreclosure questions about your Las Vegas home, please contact a Haines & Krieger attorney at 702-880-5554 to get your questions answered and figuring out what options are available to you.
Tags: forclosure, home owners, homeowners, las vegas, las vegas home foreclosures, nevada
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Wednesday, November 3rd, 2010
The traditional wisdom for debtors in bankruptcy was to protect your home and discharge unsecured debts. In some cases, bankruptcy attorneys advised surrendering a vehicle and eliminating the monthly auto payment in order to afford the home mortgage. Back when real estate prices were appreciating at staggering rates, that wisdom was sound advice. It was important to protect an asset that was appreciating quickly and could be used to secure a family’s financial future.
Unfortunately, times have changed.
Over the past few years housing prices have flattened, or even depreciated. In many areas home prices have dropped significantly. For a debtor who is upside-down on a home loan, it usually doesn’t make sense to try to dig out of negative equity and continue to pay on a home that is a liability, not an asset.
If your mortgage is stressing your family’s budget, it may be wise to walk away. It is important to consider surrendering your home during bankruptcy and renting rather than continuing to pay a burdensome mortgage payment, taxes, insurance, home repairs, and maintenance. The question to answer is whether walking away will save you money in the short run and the long run.
One tool for this analysis is provided free of charge at Trulia.com. Trulia maintains a rent vs. buy calculator that compares the cost of buying a home against the costs of renting. Using the calculator you can determine whether keeping your home is a smart financial decision. Trulia also publishes a Rent vs. Buy Index, which tracks whether buying a home or renting is less expensive in America’s 50 largest cities, based on current market conditions.
Deciding whether to walk away from a home is often difficult, but is an important consideration for any home owner facing bankruptcy. When a debtor surrenders property in bankruptcy there is generally no financial consequence to the debtor, and the debt is discharged by the bankruptcy court. If you are considering surrendering your home during bankruptcy, speak with an experienced Haines & Krieger attorney and discuss the advantages and disadvantages of the process. Call 702-880-5554 to set up a free consultation. Your bankruptcy attorney can help you reach a decision that is right for you and your family.
Tags: bankruptcy, boulder city, henderson, home, house, las vegas, nevada, north las vegas, surrender
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Tuesday, October 26th, 2010
Las Vegas residents facing foreclosure who have filed for bankruptcy in Las Vegas or are considering it may be concerned about how the recent foreclosure mess may affect their case.
What are some ways that the foreclosure moratorium may affect Las Vegas homeowners?
1. If you already filed for Chapter 13, as many homeowners do to save their homes, then you may get some extra time to sort everything out.
2. At the same time, you may be bound to your Chapter 13 payment plan, even if circumstances have changed. One exception might be if it turns out that your mortgage lender was engaged in fraud.
3. Review the fees and other amounts being charged by your mortgage lender. The mortgage lenders frequently make mistakes or have just been careless in adding fees. Don’t assume the numbers are correct just because the mortgage lender says so.
4. Mortgage lenders don’t always complete the foreclosure process. They might push forward with it. But when it comes to actually selling the home, it might be so undervalued that they just stop everything for a while. As a result, if you want to stay in your home, don’t leave until an official (e.g., the sheriff) requires you to leave. This may take longer than you think which buys you more time to prepare and adapt.
Every case is different. And one of the most important things a good Las Vegas bankruptcy lawyer can help you do is to review and verify the documentation and the amounts listed on those documents.
If you have questions about foreclosure in Las Vegas, please contact a Haines & Krieger attorney at 702-880-5554 for a free initial consultation. We’ll help you get through this and figure out your best options.
Tags: chapter 13, foreclosure moratorium, haines & krieger, las vegas, mortgage, nevada
Posted in las vegas bankruptcy information, las vegas bankruptcy lawyers, las vegas chapter 13, las vegas chapter 13 attorneys, las vegas home foreclosures | No Comments »
