Stop Foreclosure with Bankruptcy

Filing a personal bankruptcy case will stop a judicial or nonjudicial foreclosure, whether or not the foreclosure was begun before the bankruptcy. See 11 USC § 362 (a). The only notable exception to the automatic stay is for foreclosures brought by the Secretary of HUD on federally insured mortgages for real estate involving five or more units. See 11 USC …

7 Potential Drawbacks of Filing Bankruptcy Just to Halt a Foreclosure

Not everyone who files bankruptcy does so to discharge consumer debt, or even to discharge an underwater secondary mortgage. Rather, many people file bankruptcy because the automatic stay that enters into place halts foreclosures. Although this can be a powerful tool, there are drawbacks to using the bankruptcy code this way. Here are seven examples. Because you are not seeking …

Banks Are Not Playing Fair During Home Loan Modification

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 …

Las Vegas Homeowners Have Options for Underwater Mortgages

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. …

Foreclosure, Pets, and Bankruptcy

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 …

Should I file for Las Vegas bankruptcy to avoid foreclosure?

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 …

4 ways to avoid Las Vegas foreclosure rescue scams

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 …

How to Walk Away From a Las Vegas Mortgage

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 …

Why Las Vegas homeowners may benefit from the foreclosure “robo-signing” controversy

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 …

The Decision to Surrender Your Home During a Las Vegas Bankruptcy

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 …