At Orlando Bankruptcy, we understand that foreclosure is usually the result of uncontrollable circumstances you likely never expected and we feel everyone deserves a second chance. Unexpected illness, injuries, unemployment, and divorce are only a few events that make it impossible for you to pay your monthly mortgage payment. Sometimes, the threat of foreclosure occurs when an inability to make your mortgage payment combines with a drop in the value of your property. Many homeowners have been placed under financial stress due to mortgage loans that adjusted to a higher interest rate or a higher monthly payment. When the interest rate or the payment rose, many borrowers found their mortgage payments were no longer affordable. You may have tried to sell your property and with the market, you discovered it was impossible to find a buyer. You may also want to keep your property but your lender is uncooperative and will not allow you to catch up on your payments. Unscrupulous individuals may be attempting to purchase your property for less than its worth and they will tell you that they are helping when in reality, they are taking from you your exempt equity in your property and leaving you with nothing in return. Fraudsters use a variety of tactics to find homeowners in distress and fortunately in 2011; several laws were changed that eliminated many foreclosure scams. With so many scenarios in place, to be safe you need Robert Pflueger to help you, as foreclosures are complicated even for professionals who deal with the process every day. The majority of homeowners are unfamiliar with how demanding and difficult the process of foreclosure will ultimately affect not only their financial situation but also their personal life. Although every case is unique and challenging, Attorney Robert Pflueger is the best way to stop your foreclosure in its tracks.
There is no doubt that home foreclosure is one of the worst experiences anyone can endure. Not only do borrowers lose their most valuable asset, they endure extensive credit damage and may be held financially responsible for deficiency amounts. If your home sells for less than you owe, you may be financially responsible for the deficiency balance, which is the difference between what you owe and what the lender received in the sale of the home. For this reason, most people are willing to do whatever it takes to stay in their home. When you borrow money to buy a home, you sign a promissory note and agree to repay the loan in monthly installments. To protect the lender, you are required to give them a mortgage on your property. The mortgage connects the promissory note to your home, guaranteeing to the lender that if you do not pay back the loan on time they are allowed to auction it off to repay the loan. A loan backed up by a mortgage is called a mortgage or home equity loan. When a lender commits to a mortgage loan, sometimes they worry that you might default and the mortgage gives them comfort that if you do default, they can foreclose and apply the proceeds to your debt.
Although you may want to stay in your home as long as possible, if there is no feasible way to stop foreclosure proceedings by catching up on your arrears it makes sense for you to consider bankruptcy. As more Floridians fall behind on their mortgage payments, Robert H Pflueger wants you to understand that bankruptcy is not something you should fear because in many cases, bankruptcy is your best option. Robert H Pflueger is an expert in bankruptcy proceedings, which can be either voluntary or involuntary. In voluntary bankruptcy proceedings, the debtor files for bankruptcy in order to deal with a financial situation that cannot be resolved any other way. Sometimes, creditors force a debtor to file for bankruptcy because of the nature or the amount of money owed in the debt and this is an involuntary bankruptcy proceeding. Bankruptcy law refers to a branch of civil law dealing with both federal and state bankruptcy and insolvency laws and regulations. Robert H Pflueger is an expert in this field and the extensive information he provides will help you understand all of your options. He can also help you deal with the demands of your creditors to ensure you do not give up any of your constitutional rights. A Chapter 7 bankruptcy, which discharges certain debt obligations, will put your foreclosure on hold but because the procedure usually only lasts a number of months, it is considered a temporary fix. A Chapter 13 bankruptcy, which re-organizes your debts and works out repayment terms between you and your creditors, may be a more effective solution.
Chapter 13 bankruptcy protection is a very powerful solution if you have fallen behind on your mortgage payments. Stopping mortgage foreclosures is the driving force behind many Chapter 13 bankruptcies however; you must file a Chapter 13 before the mortgage company sells your home. Chapter 13 bankruptcy lets you pay off your “arrearage” or late, unpaid payments through a repayment plan that last as long as five years. You will need enough income to meet your current mortgage payment at the same time you are paying off the “arrearage” and the payments are fixed so that you can meet all your necessary living expenses first and then pay any surplus income to creditors. Attorney Robert Pflueger will help you structure a repayment plan that works for you and once you make all the required payments up to the end of the repayment plan, you will avoid foreclosure and be able to keep your home. You must make all mortgage payments that come due during the Chapter 13 bankruptcy repayment plan and your mortgage company cannot contact you in regard to your pre-filing mortgage arrears while you are in Chapter 13 bankruptcy. However, if you fail to make your post-filing mortgage payments, the mortgage company will ask the bankruptcy court to lift the protection of the bankruptcy code and resume their foreclosure proceedings. The possibility of refinancing your mortgage after you have gotten back on track with your Chapter 13 plan is realistic for many consumers.
A Chapter 13 bankruptcy uses the power of federal law to force your lender to “de-accelerate” your mortgage loan and allow you to catch up on your missing payments. To save your home from foreclosure, Florida law says that the moment your Chapter 13 Petition is filed with a U.S. Bankruptcy Court, the foreclosure proceeding against you must stop immediately. Even if the petition is filed minutes before the auction sale, the law prevents the auction from taking place. Chapter 13 may also help you eliminate the payments on your second or third mortgage. If your first mortgage is secured by the entire value of your home, which is usually the case if your home has dropped in value, you may no longer have any equity with which to secure the later mortgages. A Chapter 13 court is then allowed to “strip off” the second and third mortgages and re-categorize them as unsecured debt which under Chapter 13 takes last priority and often does not have to be paid back at all. Often Chapter 13 protection is your best alternative because it allows you to keep your property and make payments over a period of time to bring your mortgage current even if your lender and other creditors object. All foreclosures must use the court system for processing in Florida and since the courts are involved, timelines vary depending on the case.
Chapter 7 bankruptcy is a liquidation bankruptcy. If you are facing foreclosure on your home, the automatic stay created by your Chapter 7 filing only serves as a temporary defense against foreclosure. As opposed to Chapter 13 bankruptcy, Chapter 7 may give you a fresh start but it will not provide you with the opportunity to repay your mortgage arrears over time. Chapter 7 bankruptcy is an option you might consider if you know that you will not be able to keep up on your mortgage payments. Chapter 7 is a good choice if you simply need some time to make alternate plans for moving forward without a deficiency judgment against you. If you find yourself unable to ever make your mortgage payments and you want to surrender your home to the mortgage company, Chapter 7 bankruptcy may help to resolve your mortgage debt. During your first consultation with Robert H Pflueger, he will help you decide if Chapter 7 bankruptcy or Chapter 13 bankruptcy is appropriate for your situation.
Foreclosure in Florida is the process of lenders to get their property back and resell it to regain their money.
Some of the stages of foreclosure include:
Although bankruptcy can be a manageable and effective way to stop foreclosure and get your mortgage payments back on track, bankruptcy is not the only way to stop foreclosure. If you have significant equity in your home and you are not more than 90 days past due, there may be other options which Robert Pflueger will be happy to discuss with you. The reality is that both bankruptcy and foreclosure will negatively affect your credit score although sometimes bankruptcy is the preferable option when trying to rebuild credit. A foreclosure will damage your credit score for many years, will not get rid of your additional debt, and is particularly harmful if you are house shopping. A foreclosure sale on your record is worse than filing bankruptcy according to many experts, and is often a difficult obstacle to overcome in obtaining new credit. In contrast, discharging your debts in bankruptcy will harm your credit score, but can help you rebuild your score quicker than after a foreclosure. This is because bankruptcy will leave you debt-free and therefore able to start rebuilding good credit sooner.