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Since 1997 we are experienced and knowledgeable Tampa attorneys practicing exclusively in Divorce, Family, Stepparent/Relative Adoption, Consumer/Personal Bankruptcy & Mediation. We practice primarily in Tampa, Riverview, Brandon, Valrico, Lithia, Carrollwood, North Tampa, Plant City and all of Tampa Bay. Our lawyers have experience practicing in contested and uncontested divorces, including military divorces, and family law, child support, child custody and visitation, relocation of children, alimony, domestic violence, distribution of assets and debts, retirement/pensions (military and private), enforcement and modification of final judgments, paternity actions, adoptions and name changes. We offer a free consultation and we are happy to discuss your case. Call or email to schedule a consult. Our representation of our clients reflects our dedication to them.

Monday, January 10, 2011

Mortgage Loans Discharged In Chapter 7 Bankruptcy

Mortgage loans can be discharged in Chapter 7 bankruptcy proceedings so that homeowners no longer have to worry about paying an expensive loan when their income has dropped. But with a discharge, the owners will not be able to keep their house, as the bank will receive the collateral back as a result of the loan being eliminated. So there must be other reasons for owners to consider this tactic, since it does not actually save the house.

The main benefit of doing this is that homeowners are able to stop foreclosure from moving any further along in the legal process, meaning no more court documents, lawsuit paperwork, sheriff sale dates, or eviction hearings. Even if the borrowers move out of their house before the foreclosure process is complete, the courts will still move ahead with the necessary procedures to sell the house to satisfy the mortgage lien. Discharging the mortgage through bankruptcy ends this sequence of events.

Another important reason to consider filing Chapter 7 to eliminate the mortgage and move out of the house is the possibility of avoiding deficiency judgments after foreclosure. Although few banks sue again after the sheriff sale for any difference between what was owed and what the property sold for, it may be best just to discharge the mortgage and not worry about any further lawsuits regarding this property.

Bankruptcy is an important legal defense that homeowners have against unmanageable debt burdens and aggressive collections efforts, whether they are from credit cards, collection agencies, or mortgage companies. Collectors will never give up trying to go after a debt, and every day of the foreclosure process can be a nerve-wracking experience. Although the social stigma of bankruptcy may be severe, many debtors will liberated and generally much feel better with a fresh start and no extra debt.

www.FamilyMaritalLaw.com

6 comments:

  1. I am very amazed by the information of this blog and i am glad i had a look over the blog. thank you so much for sharing such great information.
    Pennsylvania Mortgage

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  2. I had a buyer that wanted to buy a home in Arizona, but he had a Chapter 7 bankruptcy 7 months ago. After researching the web I found a loan program at http://www.cfsflex.com, they allow a mortgage after a foreclosure, short sale, or bankruptcy. There is only a six month waiting period. Good to see lending options coming back.

    CFS Mortgage http://www.cfsflex.com

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  3. This comment has been removed by the author.

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  4. Our home loan programs include purchase, buyer, refinance, Pennsylvania Mortgage debt consolidation, home equity loans, second mortgages and construction loans

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  5. Don't let a foreclosure stop you from buying a new home. See Comstock if you have a buyer in need. They have a flexible credit loan. This program assists homeowners who have recently been through a foreclosure, short sale or have recently emerged from bankruptcy.

    www.thinkcomstock.com

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