San Francisco Bankruptcy Attorney Blog

A San Francisco bankruptcy attorney
What is the Lender’s Role in Foreclosure?

What is foreclosure?

Foreclosure is the process by which the lender retakes possession of the property on which the mortgage was based. The lender’s interest is secured in the home and if there is a default in repaying on the note, the lender has the option of foreclosing on the property in order to satisfy the outstanding balance.

Why would a lender foreclose?

A lender will generally want to foreclose on a property to protect its interest. There is a concern that the property will not be kept in good condition or that the borrower will abandon the property and cause substantial disrepair. A foreclosure is also a way for the lender to regain some of the credit it extended to the borrower.

Will my lender tell me about a foreclosure?

Yes. The lender must inform you of an intent to sell the property. Generally the lender will also give you statements indicating how much is due in order to stop any foreclosure proceeding. Lenders must inform borrowers of any developments regarding the foreclosure and whether there is a sale date.

What if I rent my home and I’ve defaulted on the mortgage?

The lender must still give notice to the tenants. If the home is occupied there is generally a 60 day period to allow for the renters to vacate the property. Once the time runs on having the renters vacate, the lender will generally need to bring an unlawful detainer proceeding against the tenants in order to have them removed from the property. If you are renting it is important to let the lender know the home is occupied so there is plenty of notice given to the renters.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 or (1800) 941-6730 for a free consultation or visit www.sagarialaw.com and request a free face to face appointment in a Sagaria Law office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Client Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney addresses:

How can bankruptcy assist me in keeping my home?

Bankruptcy will not only stop a foreclosure sale but can also allow an individual to make up missed mortgage payments. Chapter 13 of the bankruptcy code gives the filer three to five years to catch up on past due mortgage payments. This means that if the filer is able to pay the mortgage as it normally comes due, plus a little extra to make up for the missed payments, the home will not be sold. In addition, at the end of the three to five years, the filer will be current on their mortgage and exit bankruptcy with no threat of foreclosure.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney addresses the question: Can filing bankruptcy assist with foreclosure?

Yes. Filing a bankruptcy petition will automatically stop any foreclosure proceeding, whether it is the lender notifying you that the loan is in the pre-foreclosure stage or whether there is a trustee sale date for selling the home. An automatic stay goes into effect once a bankruptcy petition is filed, meaning no adverse action can be taken against you by your creditors.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 or (1800) 941-6730 for a free consultation or visit www.sagarialaw.com and request a free face to face appointment in a Sagaria Law office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Client Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney talks about bankruptcy and a second mortgage...

Can bankruptcy assist with my second mortgage?

Yes. In a chapter 13 bankruptcy, if the current market value of your home is less than the primary mortgage amount, you can remove the second mortgage and treat it as unsecured debt. This means that you will only be responsible for making your primary mortgage payments each month. Depending on your income, there might be some repayment to unsecured creditors, but upon completion of your chapter 13 plan, the second mortgage will no longer be attached to your home.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 or (1800) 941-6730 for a free consultation or visit www.sagarialaw.com and request a free face to face appointment in a Sagaria Law office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Client Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney discuss foreclosure...

What is foreclosure?
A foreclosure happens when the lender retakes possession of the home, which was the collateral for the mortgage. Generally this occurs when the borrower has defaulted on the loan and is unable to work out an agreement with the lender. To protect its interest, the lender will retake the home and try to sell it to cover the outstanding balance.

Can I stop a foreclosure?
There are several ways to stop a foreclosure. One is to pay the default amount – generally equal to the number of missed payments plus some late fees. Some lenders will not accept the default amount and require the entire loan balance due in order to remain in the home. If paying off those balances is not a viable option, declaring bankruptcy can prevent a foreclosure. When an individual files for bankruptcy an automatic stay goes into effect, preventing the sale of a home or the bank taking repossession of the home.

Can I remain the home after it has been foreclosed?
That generally depends on what the lenders plans are and whether it was sold at the trustee sale. It is often possible to prolong the amount of time you can remain in a home after defaulting on your mortgage but it is difficult if the bank gets the Sheriff involved. Going through an unlawful detainer process is not simple and can make finding a new place to live difficult.

What if I cannot afford my home but don’t want a foreclosure?
You should ask you lender if they do a “cash for keys” exchange. That is basically just letting the lender know you cannot afford to remain in the home but want to leave without any issues. If you surrender your keys to the lender they will often pay you to help cover certain moving expenses. This is done to protect the lenders interest in the property.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 or (1800) 941-6730 for a free consultation or visit www.sagarialaw.com and request a free face to face appointment in a Sagaria Law office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Client Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorneydiscusses bankruptcy and foreclosure...

Filing a bankruptcy petition prior to the sale of a foreclosed home stops the foreclosure process. Bankruptcy and foreclosure are closely related in the sense many individuals look to bankruptcy to help discharge debts and stop adverse actions against them. When the bankruptcy petition is filed a stay automatically goes into effect.

The stay prevents lawsuits, garnishments, and other actions from being filed against debtors while under the protection of the bankruptcy court. The automatic stay is an important tool for individuals who want to stop a foreclosure. The stay not only allows individuals to remain in their homes during bankruptcy but also allows them to rearrange their finances in order to work out a feasible repayment plan.

Lenders, however, can petition the court to have the stay lifted as applied to them. The stay is generally lifted if the individual communicates to the bank that there is no intention to remain in the property or that the property is to be surrendered during or after the bankruptcy. The bank often wants to retake possession of the home in order to protect its interest in the property.

The automatic stay goes into effect regardless of what chapter bankruptcy is filed. It is important for those filing for bankruptcy to understand that it is still possible to lose property when the bankruptcy petition is filed. As mentioned above, creditors will often ask the court to lift the stay if the property is not essential to the debtors reorganization or if payments are not made after the petition is filed.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 or (1800) 941-6730 for a free consultation or visit www.sagarialaw.com and request a free face to face appointment in a Sagaria Law office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Client Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Jose Bankruptcy Attorney explains how a short sale or foreclosure can create an unexpected tax bite that a Chapter 7 bankruptcy can prevent.

Given the current state of the economy and the drop in housing values, may people are pursuing short sales to avoid the stigma of a foreclosure on their credit report. What many of them do not realize is that both a short sale and a foreclosure can lead to unexpected tax hits from the IRS if they used home equity loans when the value of their home is high. If the home equity loan, is forgiven in the short sale or foreclosure, you can owe taxes on the amount forgiven from the second mortgage as taxable income.

This is not the case in a Chapter 7 bankruptcy filing. In a Chapter 7 bankruptcy, the estate is liquidated, and any erased debts are not taxable by law. In a Chapter 13 bankruptcy filing, the estate is “reorganized” and the debtor is allowed to pay back some of the debts based on his or her income. Your bankruptcy attorney can help you sort through the options available to you and can explain any possible tax consequences of a Chapter 13 bankruptcy.

Bankruptcy is not the end of the world financially, nor should it be used lightly. To that end the 2005 bankruptcy reform law set guidelines on how long a filer must wait before he or she can file for bankruptcy following a Chapter 7 or Chapter 13 bankruptcy filing.

Equity loans come back with a bite, The Press Democrat, December 5, 2009

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy lawyer helps answer: What do I do if I receive a notice of default?

What is a notice of default?
A notice of default is a letter from the bank or other mortgage lender informing you that the monthly mortgage payments on your home have not been made and that the loan is now in default.

What does the notice of default mean?
The notice of default means that you have missed one or more prescheduled payments. Typically the notice states when the payments were due and what is needed in order to cure the default. Some lenders will require that the entire balance be paid while others will just require the amount in arrears. Often administrative fees are also included

Does a notice of default mean my home will be foreclosed on? That depends. The notice does not necessarily mean that a foreclosure is imminent. The borrower can cure the default by paying the amount requested by the lender. If the borrower is unable to pay the cure amount, filing bankruptcy will automatically stay any further action the lender can take against the borrower. Filing bankruptcy will then allow the borrower to catch up on past payments.

How can bankruptcy help someone who receives a notice of default?
As mentioned above, filing bankruptcy will automatically stop any proceeding or other action the lender is taking or plans to take against the borrower. This allows the borrower a chance to develop a repayment plan to catch up on the missed payments. While the borrower will still be responsible for the regular monthly mortgage amount, the past due amount is not due all at once and repayments can be stretched over a period of three to five years.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy lawyer answers questions related to How to Stop Foreclosure in San Francisco?

What is foreclosure?
A foreclosure is the sale of a home through auction, by a bank or other lender, when the mortgage payments are in default. The purpose of the sale is for the bank to take the proceeds to pay off the mortgage amount. Any difference between the amount owed and the amount sold is called a deficiency, which the bank can then come after the owner for.

How does a foreclosure start?
Generally, an individual who wishes to purchase a home will borrow money from a bank or other lender. A contract is made whereby the borrower agrees to make monthly payments of a certain amount for a certain number of years. The terms of the contract will also state that if the borrower fails to make payments, the lender can obtain a court order to foreclose on the home. Notice is given to the lender either to pay the amount owed or else the home will be sold at auction.

How can I stop foreclosure?
There are various ways in which an individual can stop foreclosure of his or her home. Sometimes just explaining your financial circumstances to the bank will persuade them to give you more time to catch up on payments. Other alternatives include seeking a loan modification, which is a separate contract aimed at making the monthly mortgage payments more manageable. Often, however, the only way to stop foreclosure is to file a bankruptcy petition.

How does bankruptcy stop foreclosure?
When you file a bankruptcy petition, an automatic stay goes into effect, which will stop foreclosure, wage garnishment, and other legal proceedings against you. The stay will allow you to remain in your home and the bank will not be allowed to proceed with the foreclosure. The hope is that during bankruptcy you can work out an arrangement to develop a plan to catch up on the amount you are behind on your payments. If it turns out there is no feasible way to catch up on your payments, the filing will at least stop the foreclosure long enough to allow you more time to consider your options regarding your living situation.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco Bankruptcy Attorney answers this important bankruptcy question...

As a San Francisco Bankruptcy Attorney, I know that many people are worried that filing bankruptcy will cause them to lose their homes. Many times, that is not the case unless it is a Chapter 7 bankruptcy and there is equity in the home. People make this mistake because a Chapter 7 bankruptcy involves liquidating most of a debtor’s assets to pay creditors, including the home. But in reality, homeowners who end up filing often don’t have enough equity in their home to benefit creditors. They do not have enough equity because they’ve taken out a second mortgage or the home’s value has fallen or both. In these types of cases, the trustee handling the bankruptcy can decide not to liquidate the home, in which case the debtor gets to keep it. This is usually the case because the trustee will not take an asset that does not have money in it.

The home can also be saved via the Homestead exemption. In most cases, the Homestead exemption will allow you to keep your primary residence if your equity in it is below a certain threshold. It can vary widely from state to state: from $30,000 for a married couple filing Chapter 7 bankruptcy in Illinois, for example, to $75,000 for the same in California. So, the government has to pay you for the exemption before they will consider taking the home to pay the creditors.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!